Prof. Hill Quoted in International Financial Law Review

Professor Claire Hill was quoted in the International Financial Law Review on alternative models for compensating rating agencies. The Dodd-Frank Act mandated a study on such models. The major rating agencies, Moody's, Standard & Poor's, and Fitch Ratings, are all paid by the issuer of the securities they rate, which led to enormous problems during the crisis. Hill noted that competition among the agencies had a highly negative effect: the agencies competed for market share by effectively offering higher ratings.