New York sets rating agency fee reforms and SEC weigh in

Thu Jun 5, 2008 4:27pm EDT - - - Reuters --- By Martha Graybow and Walden Siew

Links:
http://www.reuters.com/article/ousiv/idUSN0528456020080605

http://www.financialweek.com/apps/pbcs.dll/article?AID=/20080605/REG/656329280

Comments: A move in the right direction regarding potential conflict of interest between the Rating Agencies and the Broker/Dealer Community. Cuomo is certainly asking the right questions and kudos to him for attempting to take action. However, I don't view the solution robust enough to solve the problem.

Food for Thought: As a follow up, look for the
6/11/08 proposal by the Securities and Exchange Commission.
I believe they need to bifurcate the Structured Finance Securities ratings to:

• Raise Investor awareness regarding the risks inherent to these type of investments.
• Highlight the unique performance qualities of these Structured Finance Securities.

Your thoughts and comments are always welcome.

Jim