The regulators, having attracted their fair share of criticism over the structural weaknesses that were exposed by the liquidity freeze last year, are now scrambling to be seen to be addressing the market’s problems. Not surprisingly, the rating agencies have been first in the firing line. In late May, the International Organization of Securities Commissions (Iosco) set out its voluntary code of conduct for the rating agencies, and in June the US SEC outlined its proposed rules on addressing the conflicts of interest inherent...
