If Wall Street is a casino, it's incestuous

It's a casino that's rigged, with algorithmic trading on computer the Securities and Exchange Commission still doesn't understand, with the incestuousness of paying ratings agencies for their ratings of sheiss. And, more and worse, as Salon's Andrew Leonard makes clear.

The incestuous part? EU member states know this, too, especially the incestuousness between ratings agencies and the investment banks like Goldman Sucks who sold drossy schlock as alleged 24-K gold.

(So, Lloyd Blankfein, was Moody's helping you do "God's work"?)

Oh, a few Democrats (from the party that outpaced the GOP 2-1 in 2008 election cycle campaign receipts from Wall Street, per Open Secrets) have blathered about reforming this incestuous relationship, but the financial reform bill from Chris Dodd (D-Conn. Man) never did address this.

Compare the EU, which is implementing a new regulatory system for ratings agencies, which goes into effect near the end of this year.

In fact, the concern has been so bad in the Eurozone, politicians are saying, why don't we have a European-based ratings agency?

There have been repeated calls from European policymakers in recent years for a home-grown agency to compete in the U.S. dominated sector but with little progress. Users of ratings, such as investment banks, said policymakers are aiming at the wrong target.

"They should be focusing on getting stability back to the market and a European ratings agency is not going to do that," said Mark Austen, acting chief executive of the Association for Financial Markets in Europe.

The new EU rules being phased in from September will include requiring them to undergo direct supervision if they want to issue ratings in the 27-nation bloc, and two have at least two "independent" members of their boards of directors.