The European Commission (EC) is proposing stricter regulation of credit ratings agencies (CRAs) across Europe following concerns about their contribution to the credit crunch.
It says agencies including Standard & Poor's (S&P's) and Moody's had led a "charmed existence" and predicted the new rules would be in place within the next 12 months. A registration procedure plus fresh disclosure and transparency rules are among a raft of measures it adds are designed to ensure ratings "are not tainted by the conflicts of interest which are inherent to the ratings business". The move is likely to be welcomed by providers angered at what they claim are "shortcomings" in CRA methodology following the collapse of the likes of Lehman Brothers and HBOS. Lehman Brothers H...
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