It is undeniable that global markets are intertwined, and this is no more apparent than in the interbank funding market. Recent research shows that the default risks of US banks are imported through wholesale funding by global systemically important banks of many other countries, affecting their funding costs and blunting monetary policy.
Moody’s Investors Service
Monopolies pose dangers, and the one held by the world’s three top credit-rating agencies (Standard & Poor’s, Moody’s, Fitch) is no exception. These heavyweights are influential enough to cause financial crises—and may have in the past, due to problems such as conflicts of interest. The only solution is a radical reform of this oligopoly.