Ratings. That cover up

by Angel Mas

Another cover up from regulators on their responsibility for this whole mess. They delegated their duties to a private oligopoly, that did not exercise adequate care, was unprofessional in its work and had clear conflicts of interest.

While this situation is wiping out players, harming good companies and severely penalizing citizens, the rating industry, that clique should have disappeared, after paying trillions for malpractice. Instead, the gang of three has made their best quarter ever, with the current volume of rating and re rating.

Of course, they are making the crisis worse, by trying to fix past problems (now!, which should be understood as a declaration of guilt... but it is not) and adding massive additional uncertainty to the system. And what is the public answer? Some mild regulation. Great!

http://www.ft.com/cms/s/0/2fbe7bf8-18a5-11de-bec8-0000779fd2ac.html