ND20 Alert: FCIC Hearing on Ratings Agencies
Tune in to the next chapter of the FCIC hearings.
The Financial Crisis Inquiry Commission announced today its next hearing, titled, “Credibility of Credit Ratings, the Investment Decisions Made Based on those Ratings, and the Financial Crisis.” The ratings agencies had quite the part to play in the financial meltdown, by branding risky mortgage-backed securities AAA, which instilled confidence in investors. They also take their fees from the very companies they are meant to rate — quite the conflict of interest. But they have so far escaped a lot of scrutiny. Will the FCIC show some teeth as it goes after them?
The hearing will be webcast live at FCIC.gov and there is room for the general public to attend — RSVP at FCIC.gov/contact by Friday, May 28. New Deal 2.0 will be on hand, reporting and keeping an eye on this Commission, which we are ever-hopeful will show some of the hutzpah of its predecessor, the Percora Commission of FDR’s day.
Meanwhile, read up on what New Deal 2.0 contributors have to say about ratings agencies:
“Jerome Fons speaks about the Ratings Agencies”
“Lawrence White on the Credit Rating Agencies”
“Rule 436(g): What’s Missing from Rating Agency Reform”
“LeMieux Ratings Agency Amendment Passes”