Moody’s report on Landry’s laced with jargon
“That kind of wording is not really providing any useful information,” said Irene Etzkorn, director of simplification practice for the consulting firm Siegel + Gale, llc., in New York. The firm recently completed a survey that shows many people say a lack of clarity contributed to the murky Wall Street dealmaking that contributed to the global recession. In short: Firms weren’t clear when they described how a deal worked and investors were too timid or greedy to figure it out themselves. Improving clarity can help rebuild trust, Etzkorn says. Considering they were at the forefront of downfall by failing to forecast problems in many cases, ratings agencies could stand to benefit by writing more clearly about potential risk and reward, she said.”They are under increasing scrutiny for the legitimacy of their ratings,” Etzkorn says. “By weasel-wording, I think it only erodes the confidence.”
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