It could be argued that during the global economic crisis of 2007-09, the ratings agencies such as Moody's and Standard & Poors had a conflict of interest because banks paid hefty fees to the agencies rather than to investors. How did the conflict of interest arise? Because

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The conflict of interest arose because the ratings agencies had a vested interest in keeping their clients (the banks) happy because of their need for repeat business. Banks paid hefty fees to the agencies for their ratings, which incentivized the agencies to give favorable ratings even when they may not have been entirely accurate. This conflict of interest contributed to the global economic crisis of 2007-09.

It Could Be Argued That During the Global Economic Crisis