One way to solve the lack of accuracy we have had with credit ratings in the past, is to allow competition among those offering such services. One solution: Why not allow any company who feels qualified to register as a ratings analyst? Today, a small handful has a government monopoly.
If a company can show the Securities and Exchange Commission that it has qualified analysts and capability to evaluate bonds and other securities, why not have a license?
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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