Credit rating agencies and conflicts of interest


Credit rating agencies and conflicts of interest

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dc.contributor.advisor Galbraith, James K.
dc.creator Crumley, Diana G. 2012-08-21T17:48:51Z 2012-08-21T17:48:51Z 2012-05 2012-08-21 May 2012
dc.description.abstract Credit rating agencies are controversial yet influential financial gatekeepers. Many have attributed the recent failures of credit rating agencies to conflicts of interest, such as the agencies’ issuer-pays business model and the agencies’ provision of ancillary services. This report identifies these conflicts; examines recently-finalized Security and Exchange Commission (SEC) regulations proscribing these conflicts; and suggests other possible regulatory measures. The strategies available to regulators are diverse and differ widely in their political and administrative feasibility. These strategies include outright prohibition of conflicts; removing regulatory references to credit ratings; enhancing agency liability; organizational firewalls; performance disclosures; demonstrating due diligence and its results; increasing competition; staleness reforms; internal governance; administrative registration; and requiring alternative business models. While the report primarily focuses on how the most recent financial crisis—and the related market for asset-backed securities—highlighted conflicts of interest at credit rating agencies, this report also examines how credit ratings—and their limitations—affect sovereign debt markets.
dc.format.mimetype application/pdf
dc.language.iso eng
dc.subject Credit rating agency
dc.subject NRSRO
dc.subject Conflict of interest
dc.subject SEC
dc.subject Issuer-pays model
dc.title Credit rating agencies and conflicts of interest 2012-08-21T17:48:57Z
dc.identifier.slug 2152/ETD-UT-2012-05-5115
dc.contributor.committeeMember McGarity, Thomas O.
dc.description.department Public Affairs
dc.description.department Law, School of
dc.type.genre thesis
dc.type.material text Public Affairs Law, School of Public Affairs Law - Jurisprudence University of Texas at Austin Masters Doctoral Master of Public Affairs Doctor of Jurisprudence

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