The Securities and Exchange Commission (SEC) has asked whether credit rating agencies (CRA) committed fraud by misleading investors with respect to the default risk on mortgage backed securities (MBS). This paper argues that, to the detriment of investors, the CRA did not incorporate information...

Certain developments which have prompted recent regulatory concerns – consequently resulting in the Basel Committee's decision to introduce risk based drivers, include amongst others, concerns that the standardized approaches to credit and counterparty risk relied too heavily on external...