Bloomberg News

Dinallo Says System of Issuer-Paid Debt Ratings ‘Doesn’t’ Work’

May 19, 2010

Eric Dinallo, the former New York insurance superintendent running to be the state’s attorney general, said the system of having debt issuers pay for credit ratings needs to be reformed.

“Issuer-paid ratings without some kind of independent check on it should be scrapped,” Dinallo said today in an interview with Bloomberg Television. “It doesn’t work, it’s led to the worst biases.”

To contact the reporters on this story: Sapna Maheshwari in New York at sapnam@bloomberg.net; Erik Schatzker in New York at eschatzker@bloomberg.net.

To contact the editor responsible for this story: Dan Kraut at dkraut2@bloomberg.net


American Apparel's Future
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus