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Using an international sample of more than 65,000 rating actions by Fitch, Moody's and S&P, we analyze the effect of the Dodd-Frank Act on credit ratings. We document that (i) rating report content changes significantly after Dodd-Frank and (ii) show, by exploiting within firm-quarter variation,...
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' homogeneity, and widespread market reliance on these signals. Current scholarship on CRA regulation blames policymakers …. Standardizing methodologies or setting up a public CRA could reinforce ratings' homogeneity. Replacing ratings in regulation with …
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During the past forty years, the simultaneous, symbiotic growth of financial innovation, disintermediation and deregulation has created an environment with extremely complex, opaque investment instruments. That system has now collapsed. At the very center of the crisis are a small group of...
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