We Need To Retain Control

There is a wide degree of agreement that the rating system needs to be changed. The hope would be for the industry to create a well-funded, not-for-profit, independent organization to self-regulate the industry whose opinions would be beyond reproach, like the MSRB for the municipal market.

A truly frightening alternative is that the federal government would create its own rating agency. We can only imagine the bureaucratic muddle that would ensue. Or almost as frightening is the prospect of new regulations governing — and hampering — the current ratings agencies.

We as an industry need to accept responsibility for creating the problems we have today, but the solutions we would affect would be far better than anything imposed by Congress. But we need to quickly demonstrate a commitment to change to retain control of our business.