The Wall Street Journal (July 23)
2011/ 07/ 25 by jd in Global News
According to the Journal, the “one significant achievement of the Dodd-Frank law” was the “requirement that regulators break the cartel of ratings agencies that helped ignite the 2008 financial crisis.” The journal does not want to see a retreat, but foot dragging is slowing the process. Ratings cartels systematize risk. Ultimate responsibility for risk should be decentralized to those making the decisions. Credit ratings companies should compete in the market to provide the best analysis.
Tags: Dodd-Frank, Ratings agencies, Systemic risk
