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They argue that proper regulatory reform alongside a financial transaction tax is necessary to avoid another crisis in the future. The report breaks down how the major credit rating agencies operate and the flaws in their current system, especially for sovereign debt ratings. It explains the regulations that the EU and the US have been trying to implement after the financial crisis, but argues that they do not go far enough. More regulation is needed to increase transparency, curb conflicts of interest, and increase the liability of the agencies. Even more fundamentally, the credit agencies need to change their procedure to avoid increasing the boom-and-bust cycle and the financial system needs to move away from dependence on these agencies.