A glaring conflict of interest is one possibility: these outfits are paid for their ratings by the bond issuer.
The American Bankers Asso ciation and the Association of Stock Exchange Firms are working on a scheme to imprint on all stocks a magnetic number identifying the issuer; the number .
The real problem goes to the very heart of the issuer-pay system.
Carol Meyrowitz in Bizjournals.com Air Canada delivered very strong operating results for the quarter in spite of a challenging fuel price environment. In January 2008, we completed a $1.5 billion substantial issuer bid. We also raised $97 million by way of an exempt trade in Jazz... Robert Milton http://www.google.com/url?q=http://en.wikipedia.org/wiki/Robert_Milton&source=dictionary&usg=AFQjCNF_cbQ07lSF8nLpO9VICW8RTi_vag FOXBusiness http://www.google.com/url?q=http://www.foxbusiness.com/story/markets/industries/retail/ace-aviation-reports-quarter--results-announces--million-substantial-issuer-bid/-315574580&source=dictionary&usg=AFQjCNE1WBD_hsGJmU_nAwTk6LAZrN3glA May 9, 2008
54021 71127 issuer We believe this settlement agreement provides a fair resolution for MasterCard and its issuing banks and look forward to a high level of issuer acceptance," said Carol Meyrowitz, president and chief executive officer of TJX, in a statement.
Charles Grassley in Huffington Post (blog) If the credit rating agencies are going to make a contribution to market integrity, then they can't be compromised,said Grassley. "This amendment creates a firewall so that a rating agency can be selected independent of an issuer. It goes...