Professor Kent Baker, Finance Department, was quoted in Treasury and Risk Management, a publication for financial executives, regarding a new credit agency just approved by the SEC. The SEC admitted a fourth company to the exclusive group it regards as qualified to provide corporate bond ratings. Observers say that the disparity in size initially will limit the extent to which the new agency, Dominion, can take on the established market brands of Moody’s and S&P. Professor Baker compares the ties between bond issuers and the rating agencies with those between corporations and their auditors. While relationships, post Enron, with both auditors and agencies have been under stress, many companies are sticking with what they know. Clearly, there “has to be a fairly strong reason for someone to change,” Baker notes.
 
Professor Robert L. Losey, Finance Department, was quoted in a Washington Post (3/29/03) article about a proposed merger between FBR, a mid-cap investment bank, and FBR Asset Investment Group, Inc. Under the merger, the two companies will “flip,” with the investment bank becoming a tax-paying subsidiary of the holding company, a real estate investment trust (REIT). The primary purpose of the merger is to raise visibility. Professor Losey noted that shareholders will not see huge benefits from the merger, but that there will be some. To view the article go to http://www.washingtonpost.com/wp-dyn/articles/A49276-2003Mar29.html