Description
Book SynopsisThis book examines the transgressions of the credit rating agencies before, during and after the recent financial crisis. It proposes that by restricting the agenciesâ ability to offer ancillary services there stands the opportunity to limit, in an achievable and practical manner, the potentially negative effect that the Big Three rating agencies â Standard & Poorâs, Moodyâs and Fitch â may have upon the financial sector and society moreover. The book contains an extensive and in-depth discussion about how the agencies ascended to their current position, why they were able to do so and ultimately their behaviour once their position was cemented.
This work offers a new framework for the reader to follow, suggesting that investors, issuers and the state have a âdesiredâ version of the agencies in their thinking and operate upon that basis when, in fact, those imagined agencies do not exist, as demonstrated by the âactualâ conduct of the agencies. The book primarily aims to uncover this divergence and reveal the ârealâ credit rating agencies, and then on that basis propose a real and potentially achievable reform to limit the negative effects that result from poor performance in this Industry. It addresses the topics with regard to financial regulation and the financial crisis, and will be of interest to legal scholars interested in the intersection between business and he law as well as researchers, academics, policymakers, industry and professional associations and students in the fields of corporate law, banking and finance law, financial regulation, corporate governance and corporate finance.
Table of ContentsAcknowledgments
Introduction
1 A Primer on the Credit Rating Domain
2 The Divergence Between the Actual and the Desired
3 Why the Agencies Transgress and What Allows Them to Do It
4 Tried and Failed
5 The Issue of Ancillary Service Provision
6 A Reform Proposal
Conclusion
Index
