Berating the Raters

Gasparino, Charles
November 2007
Trader Monthly;Nov/Dec2007, Vol. 4 Issue 6, p60
The author focuses on the role of credit-rating agencies in the subprime crisis in the U.S. The market-surveillance unit of the Securities and Exchange Commission (SEC) and the Office of Compliance Inspections and Examinations are planning to divide regulatory duties concerning rating agencies. He mentions that the SEC ignored the failures of the agencies because it believed it had too many significant issues to be addressed. He cites the implications of move by agencies to hand out investment-grade ratings to collateralized debt obligations (CDOs.)


Related Articles

  • S&P Downgrades Mount. Peters, Terry // Mortgage Servicing News;Mar2008, Vol. 12 Issue 2, p24 

    The article reports on the downgrade of Standard & Poor's Corp. Ratings Services in the financial services industry of New York. The rating agency has adjusted 3,787 classes from residential mortgage-backed securities (RMBS) that are collateralized by first-lien subprime mortgages. It has placed...

  • Rating Agencies Strive for Clarity in Soured Market. G. S. // Asset Securitization Report;10/1/2007, Vol. 7 Issue 37, p16 

    The article focuses on the move of rating agencies to clarify issues regarding their improved ratings in the U.S. It is noted that Moody's Investor Service Inc. released an update on its assumptions for rating new structured finance collateralized debt obligations (CDOs). In fact, some rating...

  • Re-REM ICs: A Smaller CDO Story Unfolding?  // Asset Securitization Report;Feb2011, Vol. 11 Issue 2, p10 

    The article reports on the precautionary warning by rating agencies about re-REMICs or downgraded re-securityzations in the U.S. It mentions that the agencies expresses concern on the re-REMICs as it will raises the collateralized debt obligations (CDOs). Rating agencies that vehemently against...

  • Roundup: First Union, Indy Mac HEL Securities Downgraded.  // National Mortgage News;8/29/2005, Vol. 29 Issue 48, p18 

    Reports developments related to mortgage-backed securitization in the U.S. Downgrade of the Class B of First Union HEL mortgage pass-through certificates by Fitch Ratings in New York; Decline in Origen Financial Inc.'s manufactured housing contracts series 2001-A by Fitch Ratings; Plans of...

  • Fitch Rolls Out New CDO Criteria. G. S. // Asset Securitization Report;5/5/2008, Vol. 8 Issue 18, p14 

    The article reports on the new global rating criteria unveiled by Fitch Ratings Ltd. for corporate collateralized debt obligations (CDO) in 2008. The new criteria is said to be the rating agency's response to complaints concerning the lack of transparency and rating instability for CDO...

  • Fitch Drops CIFG 11 Notches to CCC. Campbell, Dakin // Bond Buyer;6/2/2008, Vol. 364 Issue 32890, p1 

    The article reports that Fitch Ratings Ltd. downgraded CIFG Assurance NA 11 notches to CCC from A-minus in the U.S. The agency said that the severity of the downgrade is in line with conditions meeting the minimum regulatory capital requirements. IT views the company's current claims-paying...

  • Ratings agencies to revamp systems. Le Gouais, Marcel // Mortgage Strategy;2/11/2008, p10 

    The article reports on the plan of credit rating agencies to adopt new methods in the evaluation of firms in Great Britain. They have been criticized for their failure in providing forecast in the loss of the U.S. sub-prime and residential mortgage-backed securities. Standard & Poor's Corp....

  • Rating Agency: GDO Servicers Face Challenging Times.  // Mortgage Servicing News;Apr2007, Vol. 11 Issue 3, p24 

    The article focuses on the perspectives of rating agency Standard & Poor's Corp. (S&P) on the evaluation of collateralized debt obligations (CDOs) and its complexities in New York. The agency said that the growth of CDOs pose challenges for the servicers of real estate loans that are pooled into...

  • MBIA Seeks New Capital to Support its Credit Ratings.  // Mortgage Servicing News;Mar2008, Vol. 12 Issue 2, p15 

    The article reports on the need of MBIA Inc. for new capital to sustain its credit ratings in the financial services industry of Armonk, New York. The firm has reported a $2.3 billion loss in subprime mortgage bonds in the fourth quarter of 2007. The loss was attributed to the performance of...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics