Title: Credit Rating Agencies: A Case for Government Regulation
Abstract: The author has divided this paper into two parts. The first part is titled, ‘Background’, where the author has discussed two things. First, the role which credit rating agencies play in the financial markets. Second, the regulatory mechanisms for credit rating agencies, which are existent in the U.S.A. and U.K. The second part is titled, ‘Government Regulation over Self-Regulation’, where the author argues that in the wake of the Global Financial Crisis, the credit rating agencies must be regulated by the Government rather than beings self-regulated. There are four reasons for this. First, the credit rating agencies are not accountable. Second, they suffer from ‘conflict of interests’. Third, they lack transparency. Fourth, the self-regulation model of credit rating agencies failed during the Global Financial Crisis.
Publication Year: 2012
Publication Date: 2012-01-01
Language: en
Type: article
Indexed In: ['crossref']
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