Prior to the 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 by the organizations they rated, leading to concerns that they would give high ratings even when they were not deserved in order to retain the business of the organizations.

Prior to the Financial Meltdown, Bond Ratings Agencies Were Accused