Credit rating agencies rapped over conflicts of interest
WASHINGTON, DC – Legislators and financial services executives expressed their unease over "conflict of interest" issues in the credit rating agency sector during hearings in the House of Representatives in mid-September.
"I am troubled by the conflicts of interest plaguing the major rating agencies," said Michael Oxley, chairman of the committee. "Now, they are offering additional services, including consulting and hypothetical rating assessments that could further compromise their independence." Oxley said executives from Northern Trust, an Illinois-based bank, have "stated that major rating agencies have requested payment for unsolicited ratings and strong-armed the company to pay fees in return for a good
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