uscitizen
Villified User
Problems found at ratings firms
A report into the much-criticised activities of credit rating agencies has found conflicts of interest at the firms it studied.
The US financial regulator, the SEC, found that the firms, which rate investments, had broken its rules.
It began looking into their work after they gave positive ratings to sub-prime related investment products whose value later slumped.
The agencies are now implementing better procedures, the SEC said.
'Fee discussions'
Fitch Ratings, Moody's and Standard & Poor's - the three agencies investigated by the Securities and Exchange Commission - were paid to determine credit ratings of products by the companies issuing those securities.
http://news.bbc.co.uk/2/hi/business/7496599.stm
A report into the much-criticised activities of credit rating agencies has found conflicts of interest at the firms it studied.
The US financial regulator, the SEC, found that the firms, which rate investments, had broken its rules.
It began looking into their work after they gave positive ratings to sub-prime related investment products whose value later slumped.
The agencies are now implementing better procedures, the SEC said.
'Fee discussions'
Fitch Ratings, Moody's and Standard & Poor's - the three agencies investigated by the Securities and Exchange Commission - were paid to determine credit ratings of products by the companies issuing those securities.
http://news.bbc.co.uk/2/hi/business/7496599.stm