Key findings from our investigation into credit rating agencies

Key findings:

  • Despite contributing to the 2008 financial crisis by rating bonds made up of toxic mortgages as ‘AAA,’ the big credit rating companies are as powerful as ever.
  • State pension funds are suing credit raters, yet they still depend on ratings from the firms to guide investment decisions.
  • Most industry reforms haven’t been fully implemented or have failed outright, setting up the markets for another possible fall.
  • The Securities and Exchange Commission has promised not to enforce part of the Dodd-Frank law that would make credit raters liable for bad ratings.
  • The credit rating system is rife with the same conflicts of interest that caused distorted ratings before the financial crisis.