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SEC tightens grip on ratings agencies

By Joanna Chung and Aline van Duyn in New York

Published: September 17 2009 22:05 | Last updated: September 17 2009 23:49

The US Securities and Ex­change Commission passed rules on Thursday to tighten supervision of credit ratings agencies following a torrent of criticism over their role in the financial crisis.

Credit ratings agencies, which are usually paid by the issuers they rate, came under fire during the crisis because they gave top ratings to hundreds of billions of dollars of bonds backed by risky mortgages and other loans that are now in many cases worthless.

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