Regulating the ratings agencies

This is interesting:

The SEC will also remove references to ratings from some of its own rules and forms in an attempt to make investors less dependent on agencies\’ actions.

As I\’ve been arguing all along, matters might mean that we should have different regulation: but they don\’t necessarily mean that we should have more.

Here\’s the SEC saying, in effect, that at least in this area, there should be less regulation. A little more caveat emptor and a little less reliance on simply box ticking on the bureaucrat\’s forms.

Interesting, no, however much it will enrage certain people?

2 comments on “Regulating the ratings agencies

  1. Let’s not forget the rating agencies were created by US government regulation in the 1970s. Damn those unintended consequences.

  2. Rating agencies, a bit like auditors, are in an odd position, where their customers are forced to buy their services and will often want them to do a poor job.

    It’s an unusual situation in which a monopoly could be preferable to a competitive market.

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