- Patrick Young
- Regulation of rating agencies is no panacea
- www.ft.com
Summary
The idea of regulation for ratings agencies can appear a seductive panacea but it is riddled with dangerous implications…
Analysis
When politicians seek scapegoats, their self-belief that they can do better is invariably married with a clear desire to ensure they avoid future criticism by developing a rock steady regulatory system.
However, how can a government effectively agree to leverage itself to be open to future lawsuits from all sides by giving some form or explicit or even tacit guarantee of the efficiency of ratings agencies?
The knee-jerk concept of regulating is always a dangerous one.
In the case of regulating ratings agencies, the notion has the potential to be downright lethal.
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