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Peers call for agencies to 'eat what you rate'

A heavyweight committee of UK Parliamentary peers has called for credit rating agencies to "make a modest investment in the assets that they assess", in a move which echoes the "eat what you kill" legislation which forces banks to take a holding in structured assets they originate.

According to the House of Lords Select Committee on Economic Affairs, regulators could consider imposing on ratings agencies an economic interest in the accuracy of their ratings by forcing them to take a stake in the assets.

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