AP excerpt via Yahoo:
“Federal regulators on Thursday proposed new rules designed to stem conflicts of interest and provide more transparency for Wall Street’s credit rating industry, which was widely faulted for its role in the subprime mortgage debacle and the financial crisis.
The five members of the Securities and Exchange Commission voted at a public meeting to propose rules that could reshape an industry dominated by three firms: Standard & Poor’s, Moody’s Investors Service and Fitch Ratings. Their practices would be opened wider to public view and subject to some restraints.
Regulators say they also hope to spur more competition in the rating industry, with new entrants challenging the dominant firms.
The proposed rules, which were opened to public comment, could eventually be adopted by the agency, possibly with revisions.”
You can see all of my prior Rating Agency criticisms here . . .
David Einhorn on Credit Agencies (November 21st, 2007) http://www.ritholtz.com/blog/2007/11/david-einhorn-on-credit-agencies/
Sources: Missing the Mark On Ratings-Agency Reform Steven Pearlstein Washington Post, September 18, 2009 http://www.washingtonpost.com/wp-dyn/content/article/2009/09/17/AR2009091704608.html
California probes credit rating agencies Peter Henderson Reuters, Sep 17, 2009 11:14pm EDT http://www.reuters.com/article/pressReleasesMolt/idUSTRE58G7A720090918
US gets tough on ratings agencies http://news.bbc.co.uk/2/hi/business/8262209.stm
Jerry Brown joins the credit rating firm pile-on Tom Petruno Money & Company, September 17, 2009 | 12:36 pm http://latimesblogs.latimes.com/money_co/2009/09/is-there-an-easier-target-today-than-the-credit-rating-firms-that-helped-bring-us-the-subprime-mortgage-catastrophe–under.html
SEC proposes new rules for credit rating agencies MARCY GORDON AP, September 18, 2009 http://www.google.com/hostednews/ap/article/ALeqM5gQ-pDQ9vFb766JMBtICQjnsBrNigD9APA9E81
Originally published at The Big Picture and reproduced here with the author’s permission.