BNN: Ratings Agencies Regs
July 10, 2009
CEO of Rapid Ratings International, James H. Gellert discusses the Treasury Department’s “Investor Protection Act of 2009” concerning reform of the ratings industry. Gellert raises concerns regarding Treasury’s focus on curbing behavior in the issuer paid business model, rather than attacking the business model itself.
Gellert proposes a crack down on the ratings industry’s dominance by The Big Three traditional agencies, and consequently increased competition, as the best way to create more accurate ratings models.