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Can S&P’s $1.38B deal keep credit raters in check?

S&P’s settlement with the U.S. government, 19 states and the District of Columbia marks a public chastening of a major credit rating agency accused of knowingly overrating toxic mortgages that ignited the crisis. Yet the fundamental conflict of interest at the heart of the rating agencies’ business remains intact: They continue to be paid by the companies whose securities they rate.

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