One Basic Financial Regulatory Reform The Obama Administration should embrace that would arouse little political opposition and would do a lot of good in the future: end the federally sanctioned cartel for credit-rating agencies. Currently bond-raters, such as Moody s, S&P and Fitch, must be approved by the SEC, which has the effect of giving them a federal imprimatur. Thus, if a package of subprime junk is given a triple-A rating by one of these federally sanctioned graders, buyers and sellers often feel that no more due diligence is required.
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