daily notes...03 27

Further news related to subprime... -Moody's will downgrade SOME subprime bonds and CDOs backed by these bonds will be downgraded too.Since the end of 2006, Moody's has cut or warned it may lower about 4.5% of the Baa ratings on subprime bonds. The average rating cut was about 4 levels.$2.5 trillion CD0S, 40% of underlying assets are subprime mortgages, $1 tril might be impacted -Facing the meltdown of subprime market, SEC set up an enforcement unit to investigate the frauds involving subprime mortgage lenders. It hasn't identified companies to be probed. -FASB board agree to give SEC more regulation inputs in governing apointment process. People opinions to the move are divided. Some people think FASB become less indepedent. Other people think SEC should directly appoint FASB members.