Dexa/Russ Roberts

Rating Shopping and the Buy Side

Charles discusses how the buy side's demand for higher ratings drove rating shopping, leading to a race to the bottom. He questions the buy side's decision-making and highlights the importance of putting money into low-risk investments.

In this clip
From this podcast
EconTalk
Charles Calomiris on the Financial Crisis
Related Questions
- Can private rating agencies be trusted as discussed in the episode Charles Calomiris on the Financial Crisis and the clip Rating Agencies and the Financial Crisis?
- Can private rating agencies be trusted?