International financial law

‘Penalizing for past offenses is always good. But we need a new system to prevent the problem in the future….. How can you be a tough grader when the way to make millions is to get a reputation being an easy grader?’

Congressman Brad Sherman (D-Calif.) quoted in USA Today, February 3 2015, in an article entitled ‘Critics lament the “record-setting” deal with S&P does nothing to change the conflicts of interest the government said led to its case’ by Kaja Whitehouse

With reference to the above quote, critically evaluate the flaws within the credit rating system