Tuesday, July 12, 2011

rating agencies

July 7:
"...Former Spanish Foreign Minister and former NATO Secretary General Javier Solana questioned the "neutrality" of rating agencies and found that their managers are among the causes that triggered the financial crisis."

July 11:

"EU moves towards partial gag on ratings agencies

11 July 2011, 16:16 CET

(BRUSSELS) - Brussels on Monday urged a clampdown on the world's ratings agencies, including a ban on ratings for countries covered by international rescue packages, and possible legal action.

Internal Markets Commissioner Michel Barnier said in a speech delivered in Paris but released in Brussels that he would ask Poland, which currently holds the rotating European Union presidency, to put action on ratings agencies to ministers soon.

"We must first and foremost be more demanding on ratings of sovereign debts," he said. "We see ecah day the effects on the countries concerned: a hike in the cost of credit, weakened states, possible contagion to other economies."

Arriving in Brussels for eurozone talks, German Finance Minister Wolfgang Schauble said that verification was needed "to check if there is abusive behaviour" by the agencies.

"We need to examine the possibilities of smashing the rating agency oligopoly," he added..." LINK

stay tuned!


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