An Ohio lawmaker has asked whether rating agencies may have had impure motives to push Congress to create private Social Security accounts.
Rep. Dennis Kucinich, D-Ohio, raised that question today during a hearing of the House Oversight and Government Reform Committee on the role of the credit rating agencies in the recent collapse of the mortgage-backed securities market.
Lawmakers on the committee and witnesses suggested that the major rating agencies may have done a poor job of monitoring the securities, in part because they were paid directly by the issuers.
Kucinich quoted from rating agency reports suggesting that the rating agencies might cut the U.S. government’s AAA rating if the U.S. government did not “reform” Medicare and Social Security financing.