rl2010weblog.blogspot.com: EU may crack down on credit rating agencies – USATODAY.com

Tuesday, November 15, 2011

EU may crack down on credit rating agencies – USATODAY.com

EU may crack down on credit rating agencies – USATODAY.com

1 comment:

RAYLOKENovember 15, 2011 at 12:39 PM
RULES not ''properly'' set in ORDER for The LAW to be ''effective'' whenever it is neglected or ignored, ...is no enforcement at all. .... ENOUGH IS NOT ENOUGH; ....The rules also require agencies to be more transparent over how they decide on a country's, or company's, credit worthiness and to warn bond issuers of a change in rating one day ahead of publishing it.
Making rating agencies liable for their decisions could potentially spark expensive law suits in civil courts around the 27-country EU for misleading or wrong ratings.
Credit rating agencies have so far defended their assessments as opinions protected by freedom of speech — a claim that the Commission rejected.
"Ratings have a direct impact on the markets and the wider economy and thus on the prosperity of European citizens," said Internal Market Commissioner Michel Barnier. "They are not just simple opinions."
Crucially, the new rules, which need to be approved by EU governments and the European Parliament, would place the burden of proof in a law suit on the rating agency rather than the plaintiff.
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