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"A 5-star rating for conflicts of interest": Commerce Sec. Howard Lutnick's finances raise red flags

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"Our system was never designed for this level of conflict issues," ethic watchdogs say
The article from Yahoo News discusses the issue of conflicts of interest in the 5-star rating system used by Morningstar, a prominent financial research firm. It highlights how Morningstar's ratings, which are intended to guide investors in choosing mutual funds and ETFs, may be compromised by the firm's business relationships with the companies it rates. The article points out that Morningstar earns significant revenue from asset managers who pay for its research and ratings, creating a potential bias. This conflict of interest was brought to light by a lawsuit filed by investors against a fund that Morningstar had given a high rating, despite its poor performance. The piece suggests that investors should be cautious and consider these conflicts when relying on Morningstar's ratings for investment decisions.

Read the Full Salon Article at:
[ https://www.yahoo.com/news/5-star-rating-conflicts-interest-094503335.html ]