Problematic Practices Of Credit Rating Agencies: The Neglected Risks Of Mortgage-Backed Securities
This paper provides an overview of the role that credit rating agencies played in the Financial Crisis of 2008. In doing so, the paper focuses on how credit rating agencies failed to properly rate mortgage-backed securities, which played an instrumental role in bringing about the current economic problems. The paper also suggests reforming the credit rating agencies by implementing a handicapping system that infuses economic value in good credit ratings.
Franz P. Hosp. Problematic Practices Of Credit Rating Agencies: The Neglected Risks Of Mortgage-Backed Securities. John Wiley & Sons, Inc., 2010.
Available at: http://works.bepress.com/franz_hosp/2