Credit rating agencies in 2008 financial crisis

One of the common players that have often been accused of contributing immensely to the 2008 financial crisis is the rating agencies. Many people have blamed the rating agencies for not acting well and diligently during this whole period. The credit agencies have been portrayed to have acted unethically during this time, and this has greatly had effects on the financial crisis of 2008. The existence of credit ratings is one of the most important aspects of society in the present world. It is one of the custodians of ethics in modern economics. The organization also failed to acknowledge that indeed there were errors in the financial system in the country and have the system provided some rather untruthful information for the organization.

The credit agencies acted in distraught, and they were not sincere in their undertakings as they failed to give the accurate information that touched on the ongoing crisis. In retrospect, the organization acted as if there was nothing wrong and hence it did not give actual and factual information as it was required in the ground (Gupta 270). The credit and rating firms were also incompetent during this time. The organization failed to give the correct rating as was required of them but undertook on the dubious processes that enabled the company to continue the rating process successfully. It failed to work on fairness, integrity, and justice which are some of the basic ethical principles in their work. Work Cited CFA Institute (2014).