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The ratings agencies also have a direct conflict of interest in how they rate securities because the bank will go to their competitor if they don't get the rati
by jolux 10y ago
The ratings agencies also have a direct conflict of interest in how they rate securities because the bank will go to their competitor if they don't get the rating they want.
- sievebrain 10y ago"their competitor" looks like a typo but is correct. US financial regulation grants a duopoly to the two big ratings agencies: despite their utter failure in 2008 and despite the low barriers to entry, no new competitors have emerged to challenge them because of that.