US watchdog sniffs leaks at 3 rating agencies
Page 1 of 1 • Share
US watchdog sniffs leaks at 3 rating agencies
[You must be registered and logged in to see this image.]
WASHINGTON: The internal procedures of one of the world's top three ratings agencies appear to allow leaks of its decisions, according to a report by the US Securities and Exchange Commission (SEC).
At one of the larger agencies, "the procedures for disseminating a pending rating action appeared to allow for limited dissemination of a pending rating action in some instances prior to public dissemination," the report said.
The 23-page document is the latest report released by the SEC on the major ratings agencies -- Fitch, Moody's, and Standard & Poor's -- and seven others of lesser stature, which are recognized in the United States.
Annual checks of the agencies were introduced under a financial reform law that came into effect in July last year. Up until then, the checks were carried out every two years.
The latest report covers the 2009-2010 period. No agencies were named throughout the report.
The powerful "big three" raters have been accused of contributing to the global financial crisis by helping propel the sale of risky investments such as mortgage-backed securities just to net more business.
The agencies, suspected of multiple conflicts of interest, are the focus of several US probes.
The decision by S&P in early August to strip the United States of its
sterling AAA credit rating was preceded by several media reports announcing the decision was imminent.
The SEC noted that each of the big three had "made changes to improve its operations since the 2007-08 examinations."
Commission staff made a series of recommendations to each agency for improvements, notably on how to handle conflicts of interest, the report said. (AFP)
WASHINGTON: The internal procedures of one of the world's top three ratings agencies appear to allow leaks of its decisions, according to a report by the US Securities and Exchange Commission (SEC).
At one of the larger agencies, "the procedures for disseminating a pending rating action appeared to allow for limited dissemination of a pending rating action in some instances prior to public dissemination," the report said.
The 23-page document is the latest report released by the SEC on the major ratings agencies -- Fitch, Moody's, and Standard & Poor's -- and seven others of lesser stature, which are recognized in the United States.
Annual checks of the agencies were introduced under a financial reform law that came into effect in July last year. Up until then, the checks were carried out every two years.
The latest report covers the 2009-2010 period. No agencies were named throughout the report.
The powerful "big three" raters have been accused of contributing to the global financial crisis by helping propel the sale of risky investments such as mortgage-backed securities just to net more business.
The agencies, suspected of multiple conflicts of interest, are the focus of several US probes.
The decision by S&P in early August to strip the United States of its
sterling AAA credit rating was preceded by several media reports announcing the decision was imminent.
The SEC noted that each of the big three had "made changes to improve its operations since the 2007-08 examinations."
Commission staff made a series of recommendations to each agency for improvements, notably on how to handle conflicts of interest, the report said. (AFP)
Zeba Khan Hoti- Monstars
- Posts : 773
Join date : 2011-02-24
Re: US watchdog sniffs leaks at 3 rating agencies
[You must be registered and logged in to see this image.]
Maryam Mirza- Monstars
-
Posts : 981
Join date : 2011-06-18
Age : 32
Character sheet
Experience:
(500/500)
Similar topics
» US watchdog sniffs leaks at 3 rating agencies
» US, Taliban peace talks collapse over leaks: report
» Dioxin egg 'no health risk': UK watchdog
» Caffeinated alcoholic drinks unsafe: US watchdog
» Dollar weighed by downgrade of US credit rating
» US, Taliban peace talks collapse over leaks: report
» Dioxin egg 'no health risk': UK watchdog
» Caffeinated alcoholic drinks unsafe: US watchdog
» Dollar weighed by downgrade of US credit rating
Page 1 of 1
Permissions in this forum:
You cannot reply to topics in this forum
|
|
Sat May 04, 2024 11:49 am by ali001
» house disrepair claims
Thu May 02, 2024 4:29 pm by Ibad Khan Buledi
» Bounce n Bang: Physics puzzler
Thu May 02, 2024 11:39 am by ali001
» AIChatSY - AIChatbot Assistant
Wed May 01, 2024 10:48 am by ali001
» Storybook Magic App
Tue Apr 30, 2024 7:06 pm by ali001
» Flower Book Match3 Puzzle Game
Tue Apr 30, 2024 12:17 pm by ali001
» Avian Influenza Symptom in Chickens "Bird Flu H5N1 Virus" Vet learning materials, Poultry Farming
Sat Apr 27, 2024 9:57 am by Ibad Khan Buledi
» Aloha Planner - Note-Taker
Thu Apr 11, 2024 4:52 pm by ali001
» Streaming Guide Film TV Series
Tue Apr 09, 2024 9:39 pm by ali001