Senator Al Franken lectures the Financial Services industry:
“There is a staggering conflict of interest affecting the credit-rating industry,” said Senator Al Franken, a Minnesota Democrat who offered the amendment. “Issuers of securities are paying for the credit ratings. They shop around for their ratings.”
Who pays Arbitron for their ratings? Who pays pollsters to conduct polls?
The amendment requies the SEC to designate an official rating agency for asset backed securities.
Who will the SEC appoint to rate US Treasury Securities? Perhaps now would be a good time for Moody’s to downgrade the US Government debt… Would that be too obvious?
