Friday, September 28, 2007
Members of the Subcommittee on Capital Markets of the House Financial Services Committee met yesterday to investigate the role of the credit rating agencies in the current sub prime meltdown.
Members, including Congressmen Kanjorski, Pryce, Ackerman, Sherman and Marshall, asked the witnesses to describe various industry practices.
The financial markets benefit from the increased […]
Wednesday, September 26, 2007
I attended the Senate Banking Committee hearing on NRSROs today. There is a lot of concern on the part of numerous Senators about the structure of this market, conflicts of interest and accuracy of ratings.
Chairman Cox testified about the non-public examination the SEC is conducting. The primary emphasis is on the relationship between the […]
Tuesday, September 25, 2007
The SEC has recognized the seven existing NRSROs within the framework of the new recognition process embodied in the Credit Rating Agency Reform Act of 2006 and the SEC Final Rule.
Congratulations to the NRSROs. We wish them the very best success in rating the creditworthiness of issuers and securities. You play a vital role in […]
Monday, September 24, 2007
From the WSJ:
“In an interview with Sunday’s Frankfurter Allgemeine Zeitung, one of Germany’s most prominent newspapers, former Federal Reserve Chairman Alan Greenspan sharply criticized ratings agencies for their role in the current credit crisis. “People believed they knew what they were doing,” Mr. Greenspan says in today’s FAZ. “And they don’t.”
Still, he doesn’t think it’s […]
Friday, September 21, 2007
Reuters is reporting that the major credit rating agencies are talking to regulators about having additional measuring systems… ie for market risks…
“A key area of interest, highlighted by recent events, is liquidity and volatility risk. These are market risks that are not addressed by our traditional credit ratings, but we are always keen to discuss ways […]
Friday, September 21, 2007
Attended a very interesting event at the Harvard Club yesterday sponsored by the Professional Risk Managers International Association. The topic was the sub-prime crisis and the role of the rating agencies… not TOO much bashing and some very interesting analysis on bottlenecks and industry structural constraints… here are the speakers:
Sylvain Raynes, Principal, RR Consulting
Sean Egan, Managing […]
Wednesday, September 19, 2007
Reuters is reporting:
WASHINGTON, Sept 19 (Reuters) - U.S. Securities and Exchange Commission Chairman Christopher Cox said on Wednesday that he will testify at a Senate Banking Committee hearing next week on the role credit rating agencies played in the subprime mortgage market.
The hearing on Sept. 26 will focus on how the relationship between the […]
Wednesday, September 19, 2007
Saw a very cool electronic taxi top advertising NYSE Bonds yesterday… good work marketing folks…
Tuesday, September 18, 2007
According to the WSJ today:
What’s Happened: An accounting group is preparing to tell companies to use market prices when valuing securities, no matter how hard hit they are by the current financial turmoil.
What’s at Issue: Many companies and investment funds have argued that they shouldn’t have to use current prices for debt securities because […]
Monday, September 17, 2007
Lots more press about the rating agencies… just a list to keep the news together…
Conde Nast Portfolio
The Australian
Reuters
International Herald Tribune
Boston.com
MSNBC
Money.cnn.com
IDD Magazine
Business Standard
CFO.com
Business Week
Financial Times
