Thursday, July 10, 2008

SEC Faults Credit Raters

Washington Post (07/09/08) P. D2
The Securities and Exchange Commission has completed its year-long analysis of the credit rating firms Standard & Poor's, Moody's Investors Service and Fitch Ratings, concluding that they did little to prevent conflicts of interest with regard to high ratings assigned to subprime mortgage-backed securities. The agency noted that the ratings firms were compensated by the companies issuing the securities they rated.

No comments: