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Tag Archives: NRSRO

Ready comparisons

  
I attended the Securities and Exchange Commission (SEC) open meeting for adoption  of the Final Rules for credit rating agencies in Washington yesterday … these are the rules which regulate Standard & Poors (MHP) , Moody’s (MCO) and Fitch.
I’ve been writing comments to the SEC on this issue since 2003 and it’s amazing to see how [...]

New rules for raters…

Brilliant news reported by Marketwatch… new rules are coming… sounds excellent…
~~~ “Commissioners expected to vote unanimously to pass new conflict-of-interest regulations
WASHINGTON (MarketWatch) - The Securities and Exchange Commission is scheduled to take steps on Wednesday to expand its oversight of controversial credit rating agencies, which have been criticized for contributing to the financial crisis.
Commissioners [...]

Rater disincentives?

George Washington blog has some hard hitting comments about credit rating agencies…
~~~~ ” Well, the credit-rating agencies committed fraud in keeping the credit ratings for corporations that were failing too high for years. (See this and this). The government could easily prosecute them criminally for fraud.
But the government wants to keep its AAA credit rating. [...]

Credibility…

Excellent video on PBS discussing the role of the credit rating agencies in the crisis… video link here…  (running time ~ 26 minutes)
~~~~ “What role did the credit rating agencies play in the current economic crisis? This week, a former managing director at Standard & Poor’s speaks out on U.S. television for the first time about [...]

SEC Looks to Limit Rating-Firm Conflicts

From WSJ.com ~~~~ ” WASHINGTON — The Securities and Exchange Commission is expected to vote for rules next week aimed at limiting conflicts of interest at credit-rating firms, but it isn’t expected to adopt more substantial changes for the time being.
The rules would bar ratings companies from having the same officials negotiate fees with clients [...]

Ruins of the overlook

“Thou pendulum betwixt a smile and tear”      Lord Bryon
AP reports ~~~~ ” … The EU’s financial services chief Charlie McCreevy said the “very exacting rules” were needed to restore confidence in ratings. Complex investments that turned out to be far riskier than originally rated have played a role in unleashing the global financial crisis.

The [...]

River tap…

AP is reporting that the EU is proposing regulations for credit rating agencies on Wednesday… I bet the SEC will be issuing the Final Rule for NRSROs soon also… somehow I think there is some international coordination going on… which is good considering the global scope of activities of the raters…
~~~~ “ EU moves toward regulating [...]

Creating transparency…

Transparency for credit rating agencies 
View SlideShare document or Upload your own. (tags: congress credit)

Scalp huntin’

 The retired policemen of Louisiana are going to get themselves some justice… 
They are funding the pursuit and destruction of corruption…
The Louisiana Municipal Police Employees Retirement System is suing Moody’s and here is what they say… from WSJ.com
~~~~ “As a result of defendants’ misconduct, trillions of dollars of highly risky securities were sold to investors that should [...]

Standardize the scales…

From BBG…
~~~~ ” California’s Lockyer Chides Raters Over Delay in Muni Overhaul 
By Michael B. Marois
Oct. 21 (Bloomberg) — Moody’s Investors Service and Fitch Ratings are wrong to delay plans to change how they grade U.S. municipal bonds because of turmoil in global financial markets, California Treasurer Bill Lockyer said.
The upheaval on Wall Street should be an impetus [...]