Financial Times FT.com

Call to split US credit ratings agencies

By Eoin Callan and Krishna Guha in Washington and Saskia Scholtes in New York

Published: September 26 2007 20:49 | Last updated: September 27 2007 00:33

Credit ratings agencies need to separate their rating and advisory functions because of conflicts of interest in their relationship with Wall Street, the newly appointed head of a high-level government advisory panel said on Wednesday.

Eric Mindich, who was named on Tuesday as head of a private sector group advising the White House, said investor confidence in the ratings agencies had been “severely damaged” and that their business model had inherent “serious ­conflicts”.

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