Daily News: May 14, 2013

WSJ: S&P Says Credit-Rating Proposal Could Create Conflicts

The Wall Street Journal reported that Standard & Poor’s president Douglas Peterson told SEC commissioners, debt-issuers and others credit-rating industry participants at a round table discussion that a proposal for credit ratings services to revise their business models (the Franken Amendment) would create new conflicts of interest and disrupt financial markets.

The WSJ added that Dodd-Frank requires the SEC to create a board that would assign a rating firm to evaluate structured-finance deals or come up with another option to eliminate conflicts.

To read the full WSJ article (subscription required) click here.