Rating Services to Review MBS and CDO Rating Procedures After Troubling Findings by SEC
July 11, 2008
The three major rating services struggled to measure risk accurately in MBS and collateralized-debt obligations in recent years, according to an investigation by the Securities and Exchange Commission. The federal regulator used the findings to shape its recently proposed rules for the rating services. Standard & Poor’s, Moody’s Investors Service and Fitch Ratings all received poor...