In what is perhaps the biggest face-palm moment of the day, the SEC's summary report on credit raters found 22 pages worth of supervisory failure and conflicts of interest concerns at each and every one of our NRSROs. However, perhaps the most notable headline, via Bloomberg was potentially much more litigiously serious:
*SEC SAYS `LARGE' CREDIT RATER APPEARED TO LEAK PENDING RATING
*SEC DECLINED TO IDENTIFY WHICH RATER MAY HAVE LEAKED DECISION
Now who could it be?
Further headlines, via Bloomberg, include:
*SEC STAFF FOUND CONCERNS AT EACH OF THE NRSROS
The Staff is concerned that the apparently unnecessary delay in release and publication of some credit rating actions increases the possibility that pending credit rating actions will be inappropriately disseminated.
*SEC STAFF FOUND FAILURE IN MAKING TIMELY/ACCURATE DISCLOSURES
*SEC STAFF CITES SOME FAILURE TO MANAGE CONFLICTS OF INTEREST
But have ni fear, this will not continue:
*SEC DECLINED TO NAME NAMES IN CREDIT RATERS REPORT FOR FAIRNESS
*SEC STAFF EXPECTS CREDIT RATINGS AGENCIES TO ADDRESS CONCERNS