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NAIC analysts now have authority from U.S. state regulators to challenge private letter ratings if the ratings exceed by three notches what staffers deem appropriate. Danielle DiMartino Booth highlighted that this new power took effect in January, more than five years after analysts initially requested it.
The move marks a significant change in oversight and regulatory practices for private ratings within the financial sector.
Danielle DiMartino Booth has previously examined how the use of selectively deceptive data can shape perspectives on the U.S. economy. She has also flagged a recent shift as investors began to focus on loan book valuations, raising concerns over market liquidity and credibility. Her latest observations follow the implementation of stricter oversight powers for NAIC analysts.