Prior to the 2008 financial meltdown, bond ratings agencies were accused of having _____ because they were paid by the organizations that they rated. The organizations would shop around for the agency that gave them the best rating.

Question

Quizplus · Accepted Answer

Bond ratings agencies were accused of having conflicts of interest because they were paid directly by the organizations they were supposed to be rating, creating a situation where the agencies may be inclined to inflate their ratings to please their clients and secure future business.

Prior to the 2008 Financial Meltdown, Bond Ratings Agencies Were