By Josh P. Hamilton and Francine Lacqua
May 22 (Bloomberg) -- Billionaire Warren Buffett said the board of directors at Moody's Corp. should dismiss employees if a probe finds they did ``things they shouldn't have done.''
Moody's, owner of the second-largest credit-rating company, faces increased government scrutiny after starting an investigation into whether a computer error gave top rankings to securities that didn't deserve them. Connecticut Attorney General Richard Blumenthal said yesterday he is investigating ``potential fraud'' in connection with a possible ``cover-up'' of inaccurate ratings.
``If people did the wrong thing, they obviously should go,'' said Buffett, whose Berkshire Hathaway Inc. is the largest shareholder of New York-based Moody's, during a Milan news conference today. Berkshire wouldn't be involved in any such decision, Buffett said during the last stop of his four-city European hunt for acquisitions.
Buffett said he didn't know the facts, which will be gathered by Moody's board of directors. He said earlier in the news conference that management integrity was one of the qualities he values in companies that he buys.
``It would be inconsistent with Moody's analytical standards and company policies to change methodologies in an effort to mask errors,'' Moody's said in a statement yesterday.
Anthony Mirenda, a spokesman for Moody's Investors Service, wasn't immediately available to comment.
To contact the reporters on this story: Josh P. Hamilton in New York at jphamilton@bloomberg.net; Francine Lacqua in Milan at flacqua@bloomberg.net.
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