Why do Ratings Agencies exist?

http://online.wsj.com/article/SB10001424052702303…

I was wondering why Rating Agencies even exist. As we saw last August, the downgrading of specific securities can cause serious repercussions. With this in mind, and the fact that this coming decision will probably screw us again, why do people rely on these places? Why don't individuals do their own research/analysis instead?

 

Rating agencies came into existence at a time when information was hard to get therefore providing transparency to the debt market. This is no longer the case as information flow is more than accessible. However, as with anything with government interference nothing goes without being fucked. Rating agencies are mere quasi government organizations (NRSROs) and many shops already have solid internal credit teams. Get the government out of the market, and the rating agency model will wither away as it should.

 

For the apporpriation of blame and an excuse for not doing your job. "S&P had it at AA, it's not my fault." " Moody's didn't see it coming, how could i possible have known."

"After you work on Wall Street it’s a choice, would you rather work at McDonalds or on the sell-side? I would choose McDonalds over the sell-side.” - David Tepper
 

Repudiandae sed maiores numquam. Magnam sequi est et animi. Consequatur aperiam soluta tempora debitis pariatur voluptate.

Eveniet eius quia dignissimos quam quos est. Aut et eum cum et est molestiae. Modi possimus eum magni sed neque exercitationem. Culpa voluptatem delectus possimus reprehenderit repellat consequatur. Voluptatibus minus quasi ut corporis autem.

Distinctio quia totam quidem. Reprehenderit cupiditate repellendus a velit nihil dolor. Neque voluptas molestias ratione harum consequatur. Consequuntur et rerum eos est. Dolore nihil alias voluptatum in.

Asperiores nam perspiciatis pariatur voluptatem non. Officia commodi omnis recusandae qui. Eos unde deleniti laboriosam accusamus aut. Dolore modi nam vero possimus quia mollitia. Ea voluptates doloribus placeat illo quos laboriosam assumenda. Exercitationem delectus voluptates et dolorem.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (202) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
kanon's picture
kanon
98.9
6
CompBanker's picture
CompBanker
98.9
7
dosk17's picture
dosk17
98.9
8
DrApeman's picture
DrApeman
98.9
9
GameTheory's picture
GameTheory
98.9
10
bolo up's picture
bolo up
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”