Ramin Baghai, Bo Becker, 10 November 2016

Excessively high credit ratings are thought to have contributed to the Global Crisis. A key concern is the conflict of interest that arises due to rating agencies being mainly paid by the companies whose securities they rate. This column uses Indian data to explore how the commercial ties between issuers and raters affect ratings. The results indicate a fee-driven conflict of interest, with an upward bias in the ratings of issuers whose fees are important to an agency. This highlights the potential benefits for the financial system of circumscribing rating agency consulting.

Richard Portes, 15 November 2007

The global financial system shows signs of stress – turmoil, not a systemic financial crisis. Risk is being repriced and the unwinding will take some time. Now is the time to think carefully about longer-term reforms needed to improve the stability of the international financial system.

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