Moody's bungled ratings on community bank bonds, too

McClatchy reports:

Billions of dollars in top-rated bonds backed by community banks have gone bust, debunking the defense offered by credit-rating agencies that wildly inaccurate ratings were limited to risky mortgage bonds that imploded and then triggered the U.S. financial crisis.

Government regulators and lawyers across the country are examining how credit-rating agencies came to bless as "investment grade" the now-toxic bonds made up of special securities issued by community bank holding companies.

No word yet from "folksy" Warren Buffett on this one.