As the credit crisis blame game continues, most everyone agrees that credit ratings were as essential to the collapse as fraudulent mortgages - specifically the inflated credit ratings that relied on bad assumptions about home prices and risk. Even so, no one has come up with an adequate fix to the ratings quagmire.
Now a company that makes financial data terminals may have given the market a road map for minimizing conflicts of interest and changing the way that investors use ratings.
When Bloomberg introduced a credit rating function to its terminals May 10, some wondered whether the company that revolutionized technology for traders was trying to steal market share from Moody's, Standard & Poor's, and Fitch, the world's three largest rating agencies. An internal Bloomberg memo obtained by the Daily Mail reportedly says that the company wants to offer a "robust gauge" of a debt issuer's creditworthiness...
Katie Benner writes at Fortune.
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