# Prof. Lawrence White argues that government regulations should not rely on ratings agencies

1 Faculty News February 19, 2013 ![The New York Times Logo](/sites/default/files/styles/246w/public/assets/images/uat_027320.jpg?itok=W8xBr66g)>

Excerpt from [The New York Times](http://www.nytimes.com/roomfordebate/2013/02/19/how-to-prevent-more-bond-rating-fiascoes/stop-mandating-reliance-on-ratings) -- "Instead, there is a better way. Eliminate the government’s regulatory reliance on ratings. Since the 1930s, financial regulators have required many financial institutions to heed the ratings of a handful of raters. The goals of the regulators were good: making sure those institutions’ portfolios held safe bonds. But mandating reliance on the Big Three enhanced their importance and made it harder for other rating firms to compete with them."

[Read more ](http://www.nytimes.com/roomfordebate/2013/02/19/how-to-prevent-more-bond-rating-fiascoes/stop-mandating-reliance-on-ratings)