The EU has taken action on rating agencies - Spring 2011

The European Commission has said credit rating agency rules must be changed further to make the sector more diverse, cut over-reliance on ratings and to deal with remaining conflicts of interest. This came as both Spain and Greece reacted to downgrades of their credit rating.

'The last few days highlight once again how important a more and better regulated environment for ratings are,' Economic and Monetary Affairs Commissioner Olli Rehn and Internal Market Commissioner Michel Barnier said in a joint statement.

See full statement at http://ec.europa.eu/commission_2010-2014/barnier/headlines/speeches/2011/03/20110310_en.htm

See also these links

http://www.ecb.int/pub/pdf/other/ecpublicconsultationcreditratingagencieseurosystemreplyen.pdf

http://www.guardian.co.uk/business/2010/jun/02/european-union-credit-agency-watchdog

The European Commission is acting to bring transparency to the market for Credit Rating Agencies. The European Securities and Markets Authority (ESMA) started work on 1st January, one of its tasks will be to supervise and maintain the register of Credit Rating Agencies.

You can watch this video from the European Commission presenting the ESMA at youtube

http://www.youtube.com/watch?v=HTRPiMy85fc

Varnarsigur fyrir Ísland

Athugasemdir

[Guðmundur Ásgeirsson, 21.4.2011 kl. 15:48]

Moody's terms of use: "...The credit ratings and financial reporting analysis observations, if any, constituting part of the information contained herein are, and must be construed solely as, statements of opinion and not statements of fact or recommendations to purchase, sell or hold any securities. No warranty, express or implied, as to the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any such rating or other opinion or information is given or made by Moody’s in any form or manner whatsoever..."

Investment decisions based on these "statements of opinion" can hardly be considered responsible behaviour.