New York Times (March 23)
“It’s the one question about the 2008 financial crisis that people still ask me more than any other: Why have regulators done so little to rein in the credit rating agencies?” Despite abuses which helped create the sub-prime crisis and despite numerous resolutions to revise the regulatory environment for firms like S&P and Moody’s, little has been done. “Ratings still loom large, even after they were found to have been so disastrously inaccurate in 2008. It’s yet another example of the glacial pace of regulatory change.”
Tags: Abuses, Credit rating agencies, Financial Crisis, Moody's, Ratings, Regulators, S&P, Sub-prime crisis
New York Times (April 19)
S&P lowered the outlook for the credit rating of the United States. Credit rating agencies are suspect—anything they “say has to be taken with a block of salt.” Still, this latest move by S&P may be a good thing. The downgrade should focus the minds of the Government on determining a sustainable budget. While the ratings agencies “squandered their credibility” leading up to the sub-prime crisis, S&P did well this time in sending a powerful warning.S&P lowered the outlook for the credit rating of the United States. Credit rating agencies are suspect—anything they “say has to be taken with a block of salt.” Still, this latest move by S&P may be a good thing. The downgrade should focus the minds of the Government on determining a sustainable budget. While the ratings agencies “squandered their credibility” leading up to the sub-prime crisis, S&P did well this time in sending a powerful warning.
Tags: Budget, Ratings agencies, S&P, Sub-prime crisis, U.S.
