Urgent regulatory review needed to halt credit crisis - BBA

In a paper prepared by the BBA entitled 'The Credit Crunch: Implications and Changes Required', a number of steps are proposed to help prevent a future bank run like that experienced by Northern Rock. Angela Knight, chief executive of the BBA, says: “However uncomfortable it may be, we must tackle the question we are increasingly hearing from the international community about the credit crunch and the Northern Rock affair: ‘Did it really have to be done like this?’” One major proposal is to review the role of credit rating agencies in the valuation of structured credit products. The BBA ...