Sean Egan Takes On The SEC's Rating Cronyism

...Sean Egan has had enough of this consistent cronyism between rating agencies and the entire financial system, and has demanded accountability from the SEC for not just on basis of the ratings, but the motivations behind them... Zero Hedge stands firmly behind a process whereby remuneration incentives to artificially inflate ratings are properly disclosed, especially when the opportunity cost of doing so is another systemic collapse, such as the one we almost experienced with the Reserve Fund's failure.

Furthermore, now that the rating agencies are being invoked again to plaster AAA ratings on the trillions of loans that will soon make up the newly created, taxpayer subsidized securitization conduits such as TALF and PPIP, this is recipe for another disaster, and this time of even bigger proportions...

Zero Hedge: Sean Egan Takes On The SEC's Rating Cronyism