{"id":195857,"date":"2008-06-09T23:12:00","date_gmt":"2008-06-10T04:12:00","guid":{"rendered":"https:\/\/www.panix.com\/~msaroff\/40years\/2008\/06\/09\/sec-looks-to-ban-ratings-agencies-from-consulting-on-how-to-get-good-ratings\/"},"modified":"2008-06-09T23:12:00","modified_gmt":"2008-06-10T04:12:00","slug":"sec-looks-to-ban-ratings-agencies-from-consulting-on-how-to-get-good-ratings","status":"publish","type":"post","link":"https:\/\/www.panix.com\/~msaroff\/40years\/2008\/06\/09\/sec-looks-to-ban-ratings-agencies-from-consulting-on-how-to-get-good-ratings\/","title":{"rendered":"SEC Looks to Ban Ratings Agencies from Consulting on How to Get Good Ratings"},"content":{"rendered":"<p>It boggles my mind that <a href=\"http:\/\/www.bloomberg.com\/apps\/news?pid=20601087&amp;sid=agclNfxzqwC4&amp;refer=home\">this is allowed<\/a>:<\/p>\n<blockquote style=\"color: rgb(0, 0, 153);\"><p>The U.S. Securities and Exchange Commission may recommend this week that Moody&#8217;s Investors Service, Standard &amp; Poor&#8217;s and Fitch Ratings be prohibited from advising investment banks on how to earn top rankings for asset- backed securities, according to people familiar with the matter.<\/p><\/blockquote>\n<p>This just buggers the mind.  These companies were advising investment banks on how to game themselves.<\/p>\n<p>This is not the only change proposed, the SEC is going more generally for transparency in rating:<\/p>\n<blockquote style=\"color: rgb(0, 0, 153);\"><p>SEC staff may also propose at a June 11 meeting in Washington that the companies disclose all the data that goes into a rating so competitors can grade bonds even if they weren&#8217;t compensated by the underwriter, said the people, who declined to be identified because the rules aren&#8217;t final. Moody&#8217;s, S&amp;P and Fitch help design securities backed by a stream of payments, making it impossible for them to be impartial raters, a May 2007 academic study by Joseph Mason and Joshua Rosner concluded.<\/p><\/blockquote>\n<p>This is Alan &#8220;Bubbles&#8221; Greenspan&#8217;s Randroid utopia of an unregulated market, inside players conspiring to defraud the average investor.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>It boggles my mind that this is allowed: The U.S. Securities and Exchange Commission may recommend this week that Moody&#8217;s Investors Service, Standard &amp; Poor&#8217;s and Fitch Ratings be prohibited from advising investment banks on how to earn top rankings for asset- backed securities, according to people familiar with the matter. This just buggers the &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[970,1004,985],"tags":[],"class_list":["post-195857","post","type-post","status-publish","format-standard","hentry","category-corruption","category-finance","category-regulation"],"_links":{"self":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/195857"}],"collection":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/comments?post=195857"}],"version-history":[{"count":0,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/195857\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/media?parent=195857"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/categories?post=195857"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/tags?post=195857"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}