The deeply embedded nature of the credit ratings system in financial market regulation is a fundamental problem that needs to be addressed as rating agencies have exploited this regulatory dependence over many years, according to an academic and commentator.

Frank Partnoy, a law professor at the University of San Diego and author of “Infectious Greed”, a book that chronicles the rise in the use of derivatives in the financial markets, told conference delegates the agencies have been “milking” this regulatory dependence, Reuters reports.