The effects of Obama administration plan on rating agencies

Corgentum Managing Partner, Jason Scharfman, was featured on Forbes.com discussing the potential effects of the Obama administration proposed financial regulatory plan on rating agencies. In the article entitled, "Obama Calls For More Change: The determined president shifts his attention and energy to the troubled credit rating industry," . Mr. Scharfman states, "Rating agencies are going to be looked at more closely, and will be placed under much more accountability and liability."

Highlighting the increased importance of due diligence, Mr. Scharfman additionally was quoted as stating, "Rating agencies will be viewed more as a guide, rather than the be-all-end-all, and you'll see more due-diligence, whether for banks or their clients." Mr. Scharfman also discussed the importance of sufficient capital adequacy requirements in the wake of the events of Barings Bank and Long-Term Capital Management. The full article can be read on Forbes.com.

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