Tagged: credit rating agencies

Ratings agencies taken to task

A 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 […]

Protecting asset-backed securities

New rules proposed by the S.E.C. would, among other things, require that the issuers of bonds filled with bundled mortgages — not the ratings agencies — would have to vouch for their soundness and retain 5 percent of each bond.  Law Professor Tamar Frankel, an authority on securities law and author of “Trust and Honesty: American’s […]