Ratings agencies taken to task

calculatorA Senate panel concluded that the credit-rating agencies had conflicts of interest and ignored signs that fraud and lax lending had infected the housing market which triggered the economic crash.  Risk-management expert Mark Williams, a former Federal Reserve Bank examiner who teaches finance in the School of Management and is author of the just-published book “Uncontrolled Risk” about the collapse of Lehman Brothers, says the ratings agencies must be subject to regulatory oversight.

“Rating agencies cannot put profit in front of quality and their important market function. They need to be held accountable.”

Contact Mark Williams, 617-358-2789, williams@bu.edu

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