Exact(8)
Moody's and other major agencies are designated as nationally recognized statistical ratings organizations.
Mr. Macey of Yale Law School, who advocates rewriting the rules that now require nationally recognized statistical ratings organizations to bless countless deals, says that the ratings system as it currently stands encourages bubbles.
The Securities and Exchange Commission already approves nationally recognized statistical ratings organizations and is contemplating tightening oversight and regulation further — maybe even making the likes of Moody's, Standard & Poor's and Fitch Ratings financially liable for rating errors.
The S.E.C.'s case against Mr. Egan and his firm concerns a filing made in 2008 seeking special designation to be a "nationally recognized statistical ratings organization".
The three leading agencies have an oligopoly, thanks to the Securities & Exchange Commission's granting them the grandiose title of Nationally Recognized Statistical Ratings Organization, obviously a huge marketing tool.
"The result is that two or three SROs have dominated the market for credit ratings, and did so long before the SEC began to designate particular SROs as Nationally Recognized Statistical Ratings Organizations in the 1970s".
Similar(52)
The first ratings agencies, or statistical rating organizations (SROs), were formed more than 100 years ago to provide an objective, credible source of information on the risks of bonds issued by railroads and other U.S. companies.
"The rating agencies do not merit the [Nationally Recognized Statistical Rating Organization] designation," or the government stamp that makes ratings a centerpiece of the regulatory structure, Tavakoli says.
According to Aaron Schatz of Football Outsiders, the Bears rank first in both defense and special teams in his advanced statistical efficiency ratings.
First, between 2004 and 2007, S. & P. deliberately "limited, adjusted, and delayed" changes to its statistical models and ratings criteria for subprime securities that would have resulted in the firm issuing lower ratings.
As it turns out, there is an element of statistical madness — the Ratings Percentage Index — embedded in the selection process itself.
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