The SEC also should make it illegal for rating agencies to withdraw ratings “at the request of the Company”. How often do we see AM Best downgrade a company to C- or D range only to withdraw the rating. That’s BS — withdraw the opinion right when the public needs to know more than ever.
How about a penalty system? If a particular investment vehicle or company goes bust and it was rated investment grade within the last six months, fine the rating agency $1 million.
wil result in being forced to listen to a looped tape of the “Free Credit Report Dot Com” Jingle.
The SEC also should make it illegal for rating agencies to withdraw ratings “at the request of the Company”. How often do we see AM Best downgrade a company to C- or D range only to withdraw the rating. That’s BS — withdraw the opinion right when the public needs to know more than ever.
How about a penalty system? If a particular investment vehicle or company goes bust and it was rated investment grade within the last six months, fine the rating agency $1 million.