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In my experience, external ratings are just a way for bankers to be lazy and not properly do their risk analysis job, instead using socially and officially sanctioned off-the-shelf analysis.

There is nothing in agency ratings that banks (with its commercial and credit depts providing the requisite opposing perspectives) cannot do themselves correctly. In fact, using ratings means outsourcing the key function of the bank: risk assessment.

Wind power

by Jerome a Paris (etg@eurotrib.com) on Wed Apr 28th, 2010 at 11:50:09 PM EST
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