February 7, 2014
The Road to Securitization
Miguel Segoviano et al. of the IMF released a helpful Working Paper, Securitization: Lessons Learned and the Road Ahead (also on SSRN). It opens, Like most forms of financial innovation, there are cost and benefits associated with the securitization of … Continue reading
February 7, 2014 in Rating agencies | Permalink | No Comments
November 4, 2013
Balancing Consumer Protection and Access to Credit
S&P posted U.S. RMBS Roundtable: Originators, Aggregators, and Counsel Discuss New Qualified Mortgage Rules. In summarizing the roundtable, S&P notes that The ability-to-repay rule, ostensibly to prevent defaults and another housing crisis, is still very much open to interpretation. To … Continue reading
November 4, 2013 in Rating agencies | Permalink | No Comments
October 28, 2013
S&P on Rating Mortgage-Backed Securities Before The Crisis
S&P has posted The Role of Credit Rating Agencies in The Financial System, remarks by its president at the United Nations. The remarks reflect S&P’s narrative of the events leading up to the Subprime Crisis. This narrative is, unsurprisingly, self-serving … Continue reading
October 28, 2013 in Rating agencies | Permalink | No Comments
September 26, 2013
Reiss on Atlantic Yards Litigation
The New York Daily News quoted me in a story, Bruce Ratner Will Have to Pay His Opponents’ Legal Bills: Judge, about the litigation over the construction of the Barclays Center and the other buildings in the Atlantic Yards project. … Continue reading
September 26, 2013 in Rating agencies | Permalink | No Comments
August 12, 2013
Replacing Rating Agencies
Although rating agencies have been the subject of much criticism, including much from yours truly, (here for instance) there is no clearly superior replacement for the existing business model. Even worse, there is not even much theoretical work on alternatives. … Continue reading
August 12, 2013 in Rating agencies | Permalink | No Comments
April 23, 2013
S&P Seeking Dismissal of Suit
In the wake of the 2008 Financial Crisis, Standard & Poor’s (S&P) has been accused of inflating its ratings to win business during the boom in mortgage investments. The Justice Department brought civil fraud charges accusing S.& P of knowingly giving complex … Continue reading
April 23, 2013 in Rating agencies | Permalink | No Comments
April 3, 2013
S&P’s Coy-ful Analysis of Basel Securitization Framework
S&P has long taken the public position that ratings from an NRSRO (like S&P or Moodys) should not be required. This position would seem to be against its own interest and thus be quite public spirited. Its recent Response to … Continue reading
April 3, 2013 in Rating agencies | Permalink | No Comments
