A newcomer to the bond rating scene has created a furor in the rating industry and investment community by forgetting one item that counts:  transparency!

Meredith Whitney emerged intact from the wreckage of the financial crisis by her warning about bank stocks in 2007!  As a result she became a media heroine, even celebrated in a Fortune cover article and in frequent television appearances as a market seer.

All the glory seemed to have vanished ever since Ms. Whitney has entered the bond rating business.  Now she finds herself pilloried in the news media and by colleagues for predicting a calamity in municipal bonds. Critics say the call is overstated, but it has alarmed investors in that usually sleepy market.  Ms. Whitney is also drawing scrutiny from Washington, where a Congressional panel will examine the turmoil in the muni bond market, including whether Ms. Whitney’s call has fed the volatility and allowed some investors to profit unfairly.

Ms. Whitney has declined an invitation to appear before the panel of the House Oversight and Government Reform.  It appears that Ms. Whitney has not learned the lessons from the recent financial crisis that transparency is a key element of keeping financial markets sound and working efficiently.   Source: New York Times