One important thing to note is that both the buy and sell side wanted ratings inflation in the run up to the 2008 crisis. European banking regulation limited le

One important thing to note is that both the buy and sell side wanted ratings inflation in the run up to the 2008 crisis. European banking regulation limited leverage based off the rating of the asset held, with the highest rating allowing the largest leverage limits. Even when the banks had an accurate understanding of the risks involved in it, they could buy something like $50 instead of $35 of assets if it had a magical AAA rating.