It might not be this quarter, but short-seller and professional poker player David Einhorn maintains ratings agency Moody's
Einhorn -- who correctly predicted the demise of Lehman Brothers and recently set his gaze upon restaurant chain Chipotle Mexican Grill (NYSE:CMG)
Buffett meanwhile has only pared his giant Moody's stake slightly since Einhorn conveyed his short bet and he's even defended the company in front of Congressional panels, to stinging criticism.
Now, with only one count remaining against Moody's and its competitor -- McGraw-Hill (NYSE:MHP)
At the Value Investing Congress on Tuesday, Einhorn said as much, in a presentation that also outlined the investing logic behind other headline-grabbing investments such as short positions on Green Mountain Coffee Roasters
The contest between Einhorn and Buffett pits conflicting opinions on the extent to which Moody's and S&P can be held financially responsible for mortgage bond ratings that proved to be wildly inaccurate after the housing bust.
In September, a judicial ruling on lawsuits against Moody's and S&P's signal investors can continue to pursue fraud charges against the agencies, in litigation that casts doubt on whether ratings opinions can be protected by First Amendment free speech rights if a fraud can be proven.
After the ruling expunged all but a fraud charge against Moody's and S&P on a mortgage security it rated for Morgan Stanley
"It's a matter of time before they all disappear," said Einhorn, of the rating agencies.
The lawsuit, filed in 2008 by Abu Dhabi Commercial Bank and Washington's King County, argues Moody's and S&P knowingly misrated a structured investment vehicle for Morgan Stanley, which the bank then sold off to unwitting investors who suffered losses shortly thereafter.