Contributing Member of the Financial & Business Services Councils

Names and details of certain GLG News authors are available only to GLG Clients and Council Members. GLG News authors are subject-matter experts within the GLG Councils and are available for expert consulting - by phone, in-person, or written analysis. To find out how to become a GLG client or Council Member, click here.

GLG News by this Author

Analyses are solely the work of the authors and have not been edited or endorsed by GLG.

GLG News is now G+ Insights

G+ is a community for professionals, academics and entrepreneurs to connect through online discussions and in-person meetings. You will continue to see G+ Insights (formerly GLG News) here as well as on the G+ website, where you can share and discuss the G+ Insights you read.

The Real Cause of the Rating Agency Problem

December 12, 2008

Analysis of:SEC Tightens Rules for Ratings Firms | online.wsj.com

The SEC is once again trying to get its arms around the rating agency problem. The effort is fine as far as it goes, but the underlying cause of the problem is that the three leading agencies are publicly-traded companies themselves or key units of publicly-traded companies that have marketed themselves as growth vehicles. The resulting market pressures intensify the conflict of interest issues inherent in the agencies' issuer pay business models. It is virtually impossible to regulate this problem away. The solution must come from within the agencies.

Page : 11 to 1 of 1

Subscribe to Updates

By RSS