Using the Tools of Industrial Organization to Illuminate the Credit Rating Industry

Using the Tools of Industrial Organization to Illuminate the Credit Rating Industry

By:	Lawrence J. White
Abstract:	Until slightly more than a decade ago, the credit rating industry was largely a little-recognized and little-understood part of the financial system plumbing. This obscurity changed with the financial crisis of 2008 and its aftermath. After a few years of intensive attention, however, the CRAs have retreated back to semi-obscurity and attract little media or political attention. The tools of industrial organization (IO) can help us understand this industry: its structure; its behavior; and its outcomes; and the public policies that are likely to improve its functioning.
URL:	http://d.repec.org/n?u=RePEc:ste:nystbu:19-02&r=com