The best overall regulation the U. S. could impose is to limit the size of every financial institution so that the possibility of out right failure guides every actor.
Sunday, January 10, 2016
Ratings Agencies are Conflicted
Gretchen Morgenson's Still Missing the Mark on Ratings brings into question whether the rating agency impartiality problem has been solved. As long as the agency's customer is the one asking for the rating there will be a conflict of interest. Furthermore the requirement that an SEC approved rating agency be used to certify the credit worthiness of an instrument makes it all the more damming.
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