Re:Former Equifax Manager Charged with Insider Trading
by munk-a on Thursday June 28, 2018 @06:20PM
(#17420953)
If this sort of financial rating system is so crucial, we should probably nationalize the industry and make sure your score doesn't include things like adjustments due to biases (racial or whatever). Also Equifax et al. get things wrong all the time, legion are the horror stories about people's history being merged with others.
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Re:Former Equifax Manager Charged with Insider Trading
by rvern on Thursday June 28, 2018 @07:03PM
(#17421172)
Equifax has an incentive not to get things wrong because their customers care about having accurate information. Nationalizing credit ratings would remove this incentive. That Equifax still gets things wrong does not imply that things would not be even more wrong if it was nationalized.
Re:Former Equifax Manager Charged with Insider Trading
by kolpa on Thursday June 28, 2018 @08:47PM
(#17421624)
If their customers aren't checking accuracy and complaining to Equifax (and they aren't), then the incentive has no effect.
Re:Former Equifax Manager Charged with Insider Trading
by chii on Thursday June 28, 2018 @10:51PM
(#17422024)
The banks are their customers. And you can bet you bottom dollars the banks do care for accuracy.
Re:Former Equifax Manager Charged with Insider Trading
by munk-a on Friday June 29, 2018 @12:31PM
(#17425505)
The banks don't actually eat the risk of inaccurately offered loans, this is why the housing market collapsed (simplified). Most of the logical incentives in financial sectors have become corrupted by perverse incentives with securities trading.
Re:Former Equifax Manager Charged with Insider Trading
by closeparen on Friday June 29, 2018 @02:18AM
(#17422747)
Turning away good borrowers and extending credit to bad ones are both terrible for business if you’re a lender. That’s the incentive.