The Wall Street Journal explains how federal and state regulations block competition with the rating agencies that fueled the mortgage crisis by giving ridiculously rosey ratings to junky mortgage-backed securities. Thanks to such regulations, they can do their job badly without paying much of a price. It’s the public and investors who take the hit instead. I earlier wrote about the bond-rating scams and how they have ripped off the public here, here, here, and here.
Bond Ratings Scam: Feds Protect Failure
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