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Politics : American Presidential Politics and foreign affairs

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To: RMF who wrote (30859)12/30/2008 11:39:12 AM
From: TimF  Read Replies (1) of 71588
 
How the ratings process is going to improve?

If it does I think it will come from market pressures for greater credibility, more than it will from any government initiative.

The government based reserve requirements on ratings. That would seem like a good idea in that the ratings where seen as the best widely available measure of the risk, but it contributed to the problems of the ratings. When you make lower ratings expensive, you can create pressure to move the ratings up a bit. Other plans to improve ratings or rely on them could have similar indirect negative effects.
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