Regulating a Key Player

Bloomberg points out that hardly any of the talk about financial regulations mentions the rating agencies, yet they are a key player in the game. As the TARP IG said in his latest report, “The wholesale failure of the credit rating agencies to rate adequately such securities is at the heart of the securitization market collapse, if not the primary cause of the current credit crisis.”

Is there a need for them? If so, we need to devise a better system to rate securities.