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Epstein UMass Economics

Epstein: End credit rating agency conflicts of interest

Gerald Epstein

Gerald Epstein, professor and chair, economics, comments in a story about what is and isn’t in the financial regulations bill that is expected to pass the U.S. Senate soon. One thing missing from the new federal law is a way to control the credit ratings agencies that are supposed to accurately gauge the risk associated with investments. He calls for an indirect method of paying these agencies to remove the conflict created when banks create investment vehicles and then pay for the ratings agency. (Marketplace [NPR], 4/23/10)

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