The regulatory reforms of the Credit Agencies are coming soon. All I can say is its long overdue.
AP excerpt via Yahoo:
“Federal regulators on Thursday proposed new rules designed to stem conflicts of interest and provide more transparency for Wall Street’s credit rating industry, which was widely faulted for its role in the subprime mortgage debacle and the financial crisis.
The five members of the Securities and Exchange Commission voted at a public meeting to propose rules that could reshape an industry dominated by three firms: Standard & Poor’s, Moody’s Investors Service and Fitch Ratings. Their practices would be opened wider to public view and subject to some restraints.
Regulators say they also hope to spur more competition in the rating industry, with new entrants challenging the dominant firms.
The proposed rules, which were opened to public comment, could eventually be adopted by the agency, possibly with revisions.”
You can see all of my prior Rating Agency criticisms here . . .
The Abysmal Track Records of Moody’s, Fitch and S&P (November 21st, 2007)
David Einhorn on Credit Agencies (November 21st, 2007)
Missing the Mark On Ratings-Agency Reform
Washington Post, September 18, 2009
California probes credit rating agencies
Reuters, Sep 17, 2009 11:14pm EDT
US gets tough on ratings agencies
Jerry Brown joins the credit rating firm pile-on
Money & Company, September 17, 2009 | 12:36 pm
SEC proposes new rules for credit rating agencies
AP, September 18, 2009