EU Approves New Rules for Credit Rating Agencies

28 November 2012
 
European Union (EU) agreed to introduce limited controls on credit ratings agencies including additional rules on sovereign debt ratings and, to prevent conflicts of interest, the limitation on cross-ownership of agencies and the entities that they rate.
 
Please read more here and here.
 
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  1. #1 by wbwise on November 28, 2012 - 2:57 PM

    This combined with the background of the new Chairman of the BOE is definitely a good sign. Wait for the backlash from investment and banking firms, that should be fun to watch.

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    • #2 by Bogdan Marius Beleuz on November 28, 2012 - 3:12 PM

      I’m very excited about the repercussions of this decisions and the reply of the CRAs.

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  2. #3 by arjenpolku on November 30, 2012 - 8:18 AM

    I usually don’t agree with the blog Acting Man, but here (http://www.acting-man.com/?p=20778) they have a point – it is like shooting the messenger. The Credit Rating Agencies may well ignore this new rule, because what is going to happen if the Commission (or other actor) is challenging an ‘unsolicited’ rating? The country in question has to come clean, which may spark more doubts about the country’s debt. Furthermore, it might be that the CRAs are going to adapt their ratings to the frequency they can announce them, i.e. they might implement greater rating cuts because they can’t freely issue them (or can they?) and therefore they may relay more on forecasts than before…

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