I’m drafting a post for The Hearing on credit rating agencies (the ones who gave AAA ratings to all those CDOs). The CEO of Fitch is giving this prepared testimony tomorrow. Here’s the question: Can anyone find anything in there that constitutes a constructive suggestion for how regulation of rating agencies could be improved? Or is it all just self-serving insistence that there is no problem?
(My favorite part is on pages 6-7 where he says, effectively, “Don’t regulate us – regulate the issuers and underwriters instead!”
By James Kwak