Friday, July 25, 2014

The Private Credit Rating Industries have too much power

"The Big Three CRAs "have a power over governments and corporations that far outranks any influence you or I as voters or workers might have," wrote Aditya Chakrabortty in the U.K.'s The Guardian in 2012. He argued that "the agencies are neither accurate nor merely observers -- yet they bully governments around the world and make billions doing so." In a suggestion that must have sent chills through Big Three CRA offices worldwide, he wrote, "Let's have a ratings agency run by the UN, funded by pooled contributions from both lenders and borrowers. It should be the only one to have preferential access to data from corporate and countries. Let's make the ratings business a [public] utility, rather than a semi-cartel that intimidates elected politicians and rakes in excess profits. It's time to break up the bullying double-act" of Moody's and S&P."

http://tinyurl.com/o4acoxx


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