Question
Read the passage depicting a systemic problem below. Assuming everything in the statement to be true, decide which of the suggested courses of action logically follow(s) for implementation. Passage: A dominant global credit rating agency has been formally accused of intentionally inflating the credit ratings of risky sovereign debt packages, directly causing catastrophic financial losses for millions of individual pension holders worldwide. While senior directors at the agency defend their actions by asserting they were simply "adapting to standard industry grading methodologies," internal whistleblowers have leaked communications exposing deliberate collusion with major investment banks to distort market risk metrics for inflated advisory fees. This major systemic failure has severely shattered public trust in global credit assessments and investment markets. Suggested Courses of Action: 1. Enforce aggressive monetary forfeitures on the agency and initiate formal criminal prosecutions against the specific executives found guilty of conspiring to distort the risk metrics. 2. Permit credit rating agencies to establish their own internal self-policing voluntary codes of conduct, since enforcing mandatory state-run rules could slow down financial innovation and weaken market agility. 3. Establish an independent, international oversight committee completely decoupled from corporate financial interests to monitor credit appraisal models and ensure full algorithmic transparency.
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