Thursday, July 24, 2008

Problems found at ratings firms


A report into the much-criticised activities of credit rating agencies has found conflicts of interest at the firms it studied.

The US financial regulator, the SEC, found that the firms, which rate investments, had broken its rules.

It began looking into their work after they gave positive ratings to sub-prime related investment products whose value later slumped.

The agencies are now implementing better procedures, the SEC said.

See full Article.