Greasing the squeaky wheel: the case of the credit rating industry offers a lesson to risk managers worldwide

Barron, Jacob
April 2009
Enterprise/Salt Lake City;4/6/2009, Vol. 38 Issue 41, p8
The author offers a view on the lesson that risk managers can learn from the case of the credit rating industry in the global financial meltdown. He contends that businesses and risk managers gave up on the idea of due diligence throughout the economic downturn. He opines that many were led to poor investments due to reliance on ratings as a means to judge an entity's creditworthiness and that credit rating agencies have evaded scrutiny. He believes that there is nothing that determines creditworthiness no matter how accurate a rating or a score seems.


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