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Credit Rating Reform Comes Up Short

At the center of the financial crisis was the corrupted process by which bad mortgages were packaged into toxic securities with stellar credit ratings. The credit rating agencies that gave out those high grades were paid by the banks, which securitized the loans and sold them to investors. The Securities and Exchange Commission recently issued two rules, required by the Dodd-Frank financial reform law, to overhaul this process. Unfortunately, the new rules are only modest improvements to a process that requires substantial reform. More in the New York Times here.

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