One way to solve the credit rating problem is to allow competition among those offering such services.. Allow any company who feels qualified to register as a ratings analyst. Today, a small handful has a monopoly.
If a company can show the Securities and Exchange Commission that the firm has qualified analysts a and capability to evaluate bonds and other securities, then why not have the SEC license them?
Another problem will have to be resolved: Do credit rating companies have First Amendment free speech immunity? A ruling currently going through the courts has said they possibly could be sued for errors of judgment.
That could actually impair all security analysis with its future implications.
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