Congressman: Raters Helped Create Products they Rated

Edolphus Towns, the Chairman of the House Committee on Oversight and Government Reform, has led an investigation into the role the nations largest credit rating companies played in the financial crisis. He says some raters were involved in helping create the same products they later rated, and should therefore be held to a higher standard of liability. If it is proven that the credit raters were in fact grading their own work, it could affect the outcomes of dozens of investor lawsuits against credit raters worth billions.

Category:

News & Politics

Tags:

• Credit Rating Agencies
• Structuring
• Edolphus Towns
• Floyd Abrams
• Standard and Poor's

[1mealperday]

exactly! Thanks for the post. This is good