id	author	title	date	pages	extension	mime	words	sentence	flesch	summary	cache	txt
cblr-2919	Gudzowski, Milosz	Mortgage Credit Ratings and the Financial Crisis: The Need for a State-Run Mortgage Security Credit Rating Agency	2010	36	.pdf	application/pdf	11715	601	56	Also, the SEC added the requirement that CRAs disclose to the public general performance standards and, for ten percent of securities ratings, complete case histories. Inaccurate RMBS and R-CDO ratings are caused in large part by the issuer pays system of financing, whereby issuers of securities pay the CRAs for credit ratings, thus creating an obvious conflict of interests.u However, some academics and the CRAs claim that the CRAs' incentive to maintain a strong reputation (reputational capital) outweighs their desire in any individual case to profit from inflated ratings.12 The current financial crisis, however, disproves this claim and instead indicates that the conflict of interests inherent in issuer financing have overcome the reputational capital constraint and resulted in inflated RMBS and R-CDO ratings.13 Since the issuer pays model is unlikely to change, the CRAs will continue to be incentivized to inflate RMBS and R-CDO ratings, and investors and regulators will probably distrust CRA ratings of R-CDOs and RMBSs for the foreseeable future.'	cache/cblr-2919.pdf	txt/cblr-2919.txt