Tags: US | Meltdown | Investigation | Credit | Raters

Credit Rating Agency Exec Accepts Some Blame for Crisis

A former executive for a credit rating agency is preparing to tell a Senate panel that poor internal communication contributed to his industry's failure to flag risky investments ahead of the financial crisis.

Former Standard & Poor managing director Frank Raiter says in prepared testimony there was a "disconnect" between senior managers and the analytical managers responsible for assigning bond ratings. That, along with weak government regulation, led agencies into awarding high ratings to less-worthy investments.

Raiter is appearing before the Permanent Subcommittee on Investigations, which is examining credit rating agencies' role in the financial crisis.

A committee report issued Thursday says agencies were too influenced by banks.

© Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

1Like our page
2Share
Headline
A former executive for a credit rating agency is preparing to tell a Senate panel that poor internal communication contributed to his industry's failure to flag risky investments ahead of the financial crisis.Former Standard Poor managing director Frank Raiter says in...
US,Meltdown,Investigation,Credit,Raters
108
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved