SEC cracks down on credit rating agencies

Discussion in 'Credit Talk' started by cap1sucks, Dec 18, 2008.

  1. cap1sucks

    cap1sucks Well-Known Member

    credit_repair Americansâ?? credit happy spending habits may cause some to seek credit repair, but now it seems the credit rating agencies are the ones whose policies need an overhaul - at least when it comes to rating mortgage-backed securities. On December 3rd, The Securities and Exchange Commission (SEC) approved a series of measures to increase transparency and accountability at credit rating agencies. The new rules ensure that firms provide more meaningful ratings and greater disclosure to investors. Credit rating agenciesâ?? ratings of residential mortgage-backed securities are responsible in part for the current credit crisis. The SEC performed an extensive 10-month examination of three major credit rating agencies and found significant weaknesses in their practices. â??These comprehensive rules touch every aspect of the credit rating process â?? from conflicts of interest, to publication of ratings methodologies, to disclosure of ratings track records,â? said SEC Chairman Christopher Cox. â??The SECâ??s examinations of credit rating agencies uncovered serious deficiencies that these rules will address, so that investors and markets will have better information to guide investment decisions.â? You can have all the accounting standards in place, but it doesnâ??t really matter if these agencies weâ??re counting on for critical judgments are unreliable.

    Just found this web site about credit repair and credit repair information. I'll be adding it to my RSS feeds.

    Here is the web page I'm referring to.

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