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Many banking and insurance regulation are based on the ratings of the securities held : So being a Nationally Recognized Rating Agency is a pretty critical role
by mdda 14y ago
Many banking and insurance regulation are based on the ratings of the securities held : So being a Nationally Recognized Rating Agency is a pretty critical role, and a ratings agency deserves to be held to a higher standard, IMHO. OTOH, perhaps the government should subsidize them, since they are performing work for the governments regulators, in effect.
- Agathos 14y agoThey are essentially a government agency with a profit motive. This worked out as well as any reasonable person would have anticipated. The strange thing is, the government still hasn't stripped them of their quasi-regulatory powers.