Posted by
alfredlester on Thursday, September 17, 2009 5:36:55 PM
WASHINGTON (AP) &<51; Federal regulators are proposing new rules intended to stem conflicts of interest and provide more transparency for Wall Street&S217;s credit rating industry, which was widely faulted for its role in the subprime mortgage debacle and the financial crisis.
The changes proposed Thursday by the Securities and Exchange Commission could reshape an industry dominated by three firms: Standard &&8; Poor&S217;s, Moody&S217;s Investors Service and Fitch Ratings allied insurance.
S.E.C. commissioners were also proposing a ban on &S220;flash orders&S221; &<51; a practice that gives some traders a split-second advantage in buying or selling stocks. The practice has become a hot-button issue in recent weeks amid questions about transparency and fairness on Wall Street.
Proposals Ban ‘Flash’ Trading and Limit Rating Firms