Wednesday, January 23, 2013

Why not punish the big guys as well?

The SEC has barred Egan-Jones Ratings Co. from issuing ratings on certain bonds.  Egan-Jones is a very small firm in the ratings business; it has five credit analysts and supervisors, while S&P has 1,416 and Moody's has 1,252.  Clearly, the major agencies bear much, much more of the blame for the Great Recession than Egan-Jones.  But, as of now, only Egan-Jones is being punished.

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