End of Credit Rating Agencies?

By Lawrence

News from Bloomberg,

http://www.bloomberg.com/news/2013-02-05/bernanke-voiced-alarm-over-credibility-of-ratings-firms.html

If the 5 billion dollar penalties is enforced, it is the same as making sure the firm McGraw-Hill will close its business.

From past history, specifically the case of US government against Author Andersen, the accounting firm, we know that there is no such thing as defense because there is no chance for not guilty decision.

So is it the end of all credit rating agencies?

Or is it done to make a statement?

Share

Comments
  • Perry February 7, 2013 at 1:02 pm

    Are the ratings agencies being targeted as the scapegoat here? They weren’t alone in knowing of the deception. Is it a ploy to roll credit rating services into the investment houses who can justify it in a similar way they justified merging in banking, savings, loans and insurance services. In the future they should be able to merge in political representation services as well (for those who can afford it).

  • Lawrence Chan February 10, 2013 at 12:19 pm

    Or maybe as some politicians said “these firms are not capable of giving rating so the official credit rating agencies should be abolished”?

    If the official credit rating system is gone, big corporations and governments are no longer obligated to give accurate financial info to any third party.

    As we all know, the statistics and data released by many companies and government agencies are not quite useful for dissecting the information …

  • You must be logged in to comment. Log in