Ratings Agencies Sign Reform Pact With N.Y. AG

Law360, New York (June 5, 2008, 12:00 AM EDT) -- Under fire for failing to predict the subprime market crash, Wall Street's top three credit-rating agencies have reached an agreement with the New York state attorney general to institute major reforms to the bond-rating business.

Attorney General Andrew Cuomo announced the pact on Thursday in a joint statement with Standard & Poor's, Moody's Investor Service Inc. and Fitch Inc., saying the “landmark” deal would give the firms' greater independence and improve transparency across the mortgage-backed securities industry.

Under the agreement, the bond-rating firms will change their...
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