# Professor Lawrence White on Moody's plans to change the way it calculates default risk

1 Faculty News August 10, 2015 ![Bloomberg logo](/sites/default/files/styles/246w/public/assets/images/bloomberg_0.jpg?itok=qy2YlnxP)>

Excerpt from [Bloomberg](http://www.bloomberg.com/news/articles/2015-08-10/bofa-sees-moody-s-shift-as-slippery-slope-for-real-estate-bonds) -- "During the housing bubble, the widespread practice of so-called ratings shopping fueled a 'race to the bottom' among credit graders as they sought to win business, helping to fuel the later financial crisis...'We don’t know until we know if this is going to be a problem,' said [Larry White](http://www.stern.nyu.edu/faculty/bio/lawrence-white), an economics professor at New York University’s Stern School of Business. 'But surely they don’t want to be wrong a second time.'"

[Read more](http://www.bloomberg.com/news/articles/2015-08-10/bofa-sees-moody-s-shift-as-slippery-slope-for-real-estate-bonds)