A New Regulatory Framework

[bostorus]

This:

Officials said they want rules to eliminate conflicts of interest at credit rating agencies that gave top investment grades to the exotic and ultimately shaky financial instruments that have been a source of market turmoil. The core problem, they said, is that the agencies are paid by companies to help them structure financial instruments,

Comments

[auros]

Yeah, it's kind of amazing how this conflict has been "hidden in plain sight" for the last decade or so, with nobody willing to do anything about it. (And it's a damn shame Larry Summers is still around dispensing advice, after he collaborated with right wingers like Graham in pushing the financial industry deregulation that led to conflicts like that proliferating.)

[bostorus]

It amazes me even more that no politician even mentioned it until now! I have been wondering about it since this fiasco began.

Re: Summers: I just keep hoping he's learned his lesson. Sigh.