The Credit Ratings Blame Game

Congressional hearings raise questions about how credit ratings agencies evaluated mortgage securities and managed potential conflicts

The mortgage market crumbled. Now, assessing blame has become one of the hottest games around. And in Washington, they're looking for someone to pay. That's put the ratings agencies under fresh scrutiny because they gave high grades to some mortgage securities that faltered as the housing market has weakened. "Everyone is looking for someone to blame," Securities & Exchange Commission Chairman Christopher Cox told reporters following a Sept. 26 Senate hearing.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.