March 29, 2013
Rating Agency Reform
Emily McClintlock Ekins and Mark A. Calabria have recently posted a policy analysis to SSRN, Regulation, Market Structure, and Role of the Credit Rating Agencies. They argue, as others have before them, that the major rating agencies are an oligopoly. … Continue reading
March 29, 2013 in Rating agencies | Permalink | No Comments
January 9, 2013
SEC Staff Report on Rating Agencies Goes Through The Motions
The SEC staff report required by Dodd Frank section 939F looks like it is just going through the motions. It is poorly organized and marred by poor analysis. It is unclear what it is trying to achieve, other than complying … Continue reading
January 9, 2013 in Rating agencies | Permalink | No Comments
December 22, 2012
SEC To Focus on Structured Finance Ratings
A SEC staff study looks at three ways to reform the manner in which ratings are produced for structured finance securities. The study, required by Dodd-Frank, addresses (1) The credit rating process for structured finance products and the conflicts of … Continue reading
December 22, 2012 in Rating agencies | Permalink | No Comments
November 27, 2012
Disturbing Reminders about Rating Agencies in Brummer’s New Article
Some disturbing reminders in The New Politics of Transatlantic Credit Rating Agency Regulation. Major rating agencies (CRAs) generally did not verify the information used to determine the creditworthiness of the products they rated. Plus new models for rating subprime mortgages … Continue reading
November 27, 2012 in Rating agencies | Permalink | No Comments
November 20, 2012
“Downgrading Rating Agency Reform”
This is the title of Jeffrey Mann’s forthcoming article. He writes The most important part of the Act remains the most unresolved: the SEC’s mandate to design an alternative rating industry business model to address the conflicts of interest created … Continue reading
November 20, 2012 in Rating agencies | Permalink | No Comments
November 10, 2012
Australian Court Rules S&P’s Ratings of MBS were Misleading
Hannah Low and Jonathan Shapiro of the Australian Financial Review report that an Australian Federal Court ruled that Standard & Poor’s rating of complex financial products was misleading. The court held that the credit assessment process was negligent and no … Continue reading
November 10, 2012 in Rating agencies | Permalink | No Comments
