Heat rises on credit-ratings agencies.

The massive three ratings agencies have drawn fire for giving their mark of approval trusted by banks, instruments firms, insurers and financiers to thousands of real estate-backed stocks that dropped in worth when the US home market fell down. Previous Moody's manager Eric Kolchinsky told Congress on Wed. that even this year the ratings agency broke instruments laws by issuing credit records it knew were inaccurate. A Fed. court last month ruled that ratings agencies couldn't ward off investors' court actions by saying that their ratings were protected as freedom of speech under the First modification. Other critics say the suggestions leave the agencies' real problem principally untouched : they're paid by the firms that issue instruments, not by the financiers who finally will obtain them. So they have an inducement to build business by relaxing their standards. "You're rating clients who are paying you.