Almost one year after the rating agencies had their first bloodbath of structured finance downgrades, and after months of market outcry for increased transparency and further ratings oversight, the Securities and Exchange Commission (SEC) has responded with an initial set of regulations. But while further ratings disclosure is needed, market pundits agree that these reforms do not solve the root of the problem.

"One of the problems is that ratings are a crutch, and [these reforms] don't deal with the fact that investors place undue reliance on these ratings," said Bert Ely, banking consultant and principal of Ely & Co. "Five or ten years from now, people forget the past and we will be back to a reliance on ratings."

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