Warren Buffett defends credit rating agencies

Warren BuffettThe billionaire investor of US, Warren Buffett defends the credit rating agencies those who failed to spot the US mortgage bubble. It is seen as a major cause for the recent financial crisis in the country. Mr. Buffet has said in New York that the agencies have made a wrong decision but every body including him has made that wrong call.

He has said that US had not been recognizing that the housing market of the country had overheated. The agencies made high ratings to the US mortgage related debt which went very much wrong.

Mr. Buffett is the largest share holder of the Moody's credit agency and he spoke all these arguments before the Financial Crisis Inquiry Commission (FCIC) of US Congress. This commission is investigating the role of the credit rating agencies in this crisis.

These agencies has been alleged of giving over generous ratings to the investment packages which includes US mortgage debt and went wrong when the house buyers defaulted in their payments. European Union also suggested a new watchdog to supervise the agencies. Mr. Buffett has said that all the US citizens believed that the housing prices could not fall down in this dramatic way.