Instructions: Your response should be no more than 2 pages.

There is a debate on conflicts of interest that exist between certain bond ratings agencies, such as Moodys and Standard & Poors, and the corporations bonds that they rate.

There is also a debate on conflicts of interest that exist between financial firms, such as Goldman Sachs and J.P. Morgan, and the corporations equity that they rate.

1. Briefly describe the conflict of interest for each.
2. Contrast between these two conflicts of interest.
3. Discuss strategies that could potentially reduce the bond rating conflict of interest.
4. Discuss strategies that could potentially reduce the equity rating conflict of interest.