The SEC Chairman Christopher Cox is back for more
transparency in the market this time with ratings
agencies. The proposed rules should prevent agencies from
trying to win business by giving better ratings.
In a speech in front of the SEC last week Cox proposed
changes to Rules 17g-2 and 17g-5 that would force ratings
agencies (Nationally Recognised Statistical Rating
Organisations in the US) and arrangers that hire them to
disclose more information to the market.
The 17g-5 change requires arrangers to provide...