Credit ratings agencies making same mistakes as in 2008, says SEC
On Dec. 28, 2015, the American Securities and Exchange Commission released its most recent report evaluating credit ratings agencies, such as Moody's and Standard & Poor's.
And what it found has business-watchers troubled.
If credit ratings agencies haven't reformed, is the U.S. in danger of another financial meltdown?
The SEC reported that several big agencies are still behaving much like they did in the lead up to the 2008 global financial crisis. The ratings provided by these agencies are meant to help investors understand the risk associated with buying corporate or government debt.
But in 2007, several agencies helped trigger the U.S. mortgage crisis by giving high ratings to risky mortgage bonds.
New York Times business journalist Gretchen Morgenson joined Anna Maria to look at the on-going mistakes The Big Three credit rating agencies keep making.
Gretchen Morgenson is the co-author of the book, Reckless Endangerment: How outsized Ambition, Greed and Corruption led to Economic Armageddon.
This segment was produced by The Current's John Chipman.