Cut ratings agencies loose
Congress is leaning toward greater regulation for officially sanctioned credit rating agencies, says Richard Beales in BreakingViews.com. But it would be better to “end the practice of giving ratings official blessing in the first place.” Investors and government officials don’t use them correctly, anyway, and “tighter regulation” would stifle both government agencies and financial innovation. Sure, “investors would—shockingly—have to rely more on their own analytical work,” but they might demand more “simplicity and standardization” in assessing risk. “That doesn’t sound like such a bad result.”
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
-
What should you be stockpiling for 'World War Three'?In the Spotlight Britons advised to prepare after the EU tells its citizens to have an emergency kit just in case
-
Carnivore diet: why people are eating only meatThe Explainer 'Meatfluencers' are taking social media by storm but experts warn meat-only diets have health consequences
-
Scientists want to fight malaria by poisoning mosquitoes with human bloodUnder the radar Drugging the bugs
