former moody's executive richard michalek says analysts got the message quickly: being too tough would put year-end bonuses in doubt. >> clearly, if for any reason you were stopping a deal or delaying a deal or creating an issue with the relationship with the banker and moody's, that was a problem. moody's c.e.o. raymond mcdaniel says investment bankers never want a tough rating that hurts a deal. but while he pays attention to market share, mcdaniel says he always puts ratings quality first. >> those are risks and they must be managed properly so the ratings system is not compromised in any way. >> reporter: the credit rating agencies are supposed to be the referee on the field and senator carl levin says their call should never determine whether someone gets a bonus. the financial regulatory reform bill doesn't address that conflict, but levin says it's got to find it's way into the bill when the senate takes it up next week. darren gersh, "nightly business report", washington. >> tom: more encouraging news on housing, new home sales surged 27% in march from february's weak pace. the

. >> we heard from richard michalek this morning that there was a dramatic change in culture at moody'sled by brian clarke saison and that they movd away from a more analytic, academic environment. did you hear that testimony? did that trouble you? >> id did trouble me that that was his view, yes. >> he testified that some of the bankers have complained to brian clarkson and that he was asking too many questions. it wanted him to be removed from their deal reviews and they got their wish. did you hear that? >> i did not think he heard them say that they got their wish. >> he said he was taken off the case, right? >> i do not know of a case where he was. >> you did not hear him say that he was no longer to work with a couple of banks? >> in fact, he worked with at least one of those banks. >> did you hear him say that he was taken off the case with those two banks? taken off the client list for those two banks? >> i did listen to this testimony. i do not recall. >> was it true that he was not told -- told not to work with one or more banks? >> i am not aware of that. >> were you there th

>> yes. >> my name is richard michalek. i join the structured derivatives products in june 1999. my position was eliminated in december of 2007. i held the title of vice president credit officer. i performed legal analysis, and to assist in the development of refining trading practices. my regular responsibilities included participating in rating committees -- committees within the group. consulting on legal matters brought me to new york, london. i published the group's quarterly and annual review, assisted with the legal portion of the semi annual training sessions for new hires. during my last year, my primary responsibilities were split between serving as a senior analyst and being the project leader responsible for developing a methodology for rating collateral managers. i was a securitization consultant for a law firm. it before that, i was an associate lawyer. i was admitted to the bar as a solicitor in new zealand. my testimony today is based on my experience working in the structured derivatives product group. well i have the opportunity to interact with several other gr

>> yes. >> my name is richard michalek. i join the structured derivatives products in june 1999. my position was eliminated in december of 2007. i held the title of vice president credit officer. i performed legal analysis, and to assist in the development of refining trading practices. my regular responsibilities included participating in rating committees -- committees within the group. consulting on legal matters brought me to new york, london. i published the group's quarterly and annual review, assisted with the legal portion of the semi annual training sessions for new hires. during my last year, my primary responsibilities were split between serving as a senior analyst and being the project leader responsible for developing a methodology for rating collateral managers. i was a securitization consultant for a law firm. it before that, i was an associate lawyer. i was admitted to the bar as a solicitor in new zealand. my testimony today is based on my experience working in the structured derivatives product group. well i have the opportunity to interact with several other gr