FOX Business Network’s Charlie Gasparino reports Meredith Whitney “has yet to apply” with the Securities and Exchange Commission [SEC] for Rating Agency Designation. Gasparino said in the process, “you have to disclose your conflicts of interest” and “scrutiny will be turned up” on her business practices.
Excerpt ; courtesy of Fox Business Network:
On Meredith Whitney’s delay in applying for a Rating Agency Designation with the SEC:
“Sources are telling the FOX Business Network she has yet to apply for that status. People are questioning whether it’s because there is so much scrutiny on her, so much controversy concerning that call, people are having doubts as to whether she will apply for that rating’s agency’s license. If she does, scrutiny will be turned up. In that process, you have to disclose your conflicts of interest. Every rating’s agency has conflicts of interest. They are paid by the companies they rate. But it becomes really interesting with Meredith Whitney; she is the sole proprietor of a research firm. She could downgrade the bonds of a stock on the rating agency side while she is telling her clients to short that stock on the other side. Obviously a lot of people did make a lot of money off of her call on the muni’s. Whitney has not returned our phone call.”