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So, apparently (according to the article), the bond raters are paid by the bond issuers. How in the world is that not a conflict of interest? There must be some
by ashu 18y ago
So, apparently (according to the article), the bond raters are paid by the bond issuers. How in the world is that not a conflict of interest? There must be some "pro" for the financial world being this way?
- tphyahoo 18y agoThe pro is, if you are an insider, your ass is subsidized by everyone else. So, it is cost effective to lobby, bribe, and generally deal underhandedly to get that subsidy. Times like the recent bailout is when your investment in underhandedness pays back handsomely.
- chubbard 18y agoI completely agree. How can anyone look at this fact and not see it as totally undermining the intent of bond raters?