Financial Times: SEC Faults Bond-Rating Agencies

The FT has published a comprehensive series of articles on the crisis among the credit-rating companies, those Wall Street giants such as Moody's and S&P that rank bonds according to safety. The entire series is worth a look. But the most interesting piece reports the Securities and Exchange Commission has found that the agencies failed to manage the conflicts of interest in the industry. The SEC's official report on the crisis is due later this week.

By coincidence, BNET has published a piece in which writer Dan Ackman outlines his plan to solve the conflict of interest problem.

Click here for an explanation of how bond-rating agencies work.