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View Diary: MN-Sen: Al Franken (D) Calls For Cleaning Up The Credit Rating System (16 comments)

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  •  Franken explained this quite well last night on (3+ / 0-)
    Recommended by:
    poopdogcomedy, Losty, blue91

    Last Word with Lawrence O'Donnell/MSNBC.  It is a complicated piece of legislative art that he is promoting, but totally reasonable goal to take away the profit  motivation for over-rating a financial instrument from the ratings companies.

    It is like using the house evaluation/inspection done by the seller when you shop for a home.  When the seller is paying for the evaluation, the inspector is highly motivated to say that everything is great.

    Franken's bill reduces the likelihood  that the agencies will highly rate a flawed financial derivative the way the sub-prime mortgage backed securities were over-rated.

    If love could have saved you, you would have lived forever. &

    by weck on Tue May 14, 2013 at 05:10:41 PM PDT

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