Why does it seem that in the end, there is no change in all this "change"? Just a lot of roiling racket that goes nowhere to do nothing....Well, in that case, we can expect more of the same shenanigans from this bunch of ratings jokers!
Another few years of investors getting jerked around and there will be no trust in the ratings agencies, no trust in the markets, and no trust in the corporations (For the record, I am already in Notrustville). Then all those fatcats will have to haul their obese fannies out of their cushy office chairs and do some real work in order to eat. That may not be such a bad thing. Maybe the obesity numbers in America will suddenly drop. Wait for it, wait for it, change is a comin' (just don't hold your collective breaths).
Overhaul Leaves Rating Agencies Largely Untouched By ERIC DASH Four stars, two thumbs up, a must read: Rave reviews like those might seem a bit suspect if they were paid for by the restaurateurs, movie makers and authors being reviewed.
But that is essentially how things work in the credit-rating industry, a central culprit of the financial crisis that, to its critics’ dismay, now seems to be escaping serious change.
In the overhaul of financial regulation proposed by the Obama administration on Wednesday, rating services — which, during the boom, stamped high ratings on many subprime securities — will avoid the radical changes their detractors have urged.
While the administration is proposing some modest changes, none addresses what many see as the central problem: Services like Moody’s and Standard & Poor’s are paid by the companies whose securities they are evaluating. It is as if Hollywood studios paid movie critics to review their would-be blockbusters. Despite calls to shake up the ratings establishment, the industry’s “issuer-pay” system is deeply entrenched. And, while the services have taken some steps to mitigate conflicts, they reject the idea that they should have been more
vigilant. (Are they freaking KIDDING me!!??)
More here (if you can stomach it):