EU wants ratings firms to relent on troubled nations..grovel on your knees to the rating agencies
http://online.wsj.com/article/SB10001424052970204618704576643001322995600.html
The European Commission is leaning toward proposing a ban on the issuing of sovereign credit ratings for countries in bailout talks, a top official said on Thursday.
“I think it’s legitimate to have a special treatment when a country is in negotiation or is covered by an international solidarity program with the IMF or a European solidarity” program, said Michel Barnier, European internal market commissioner.
Should the commission, the executive arm of the European Union, come to view these sovereign ratings are inappropriate, “we could ban it or suspend the rating for the necessary time frame,” he said. “I am studying this matter very seriously.”
The EU is set to make a fresh round of proposals on tightening rules for credit-rating firms on Nov. 9.
The 27-nation bloc has been tightening rules on ratings firms since the financial crisis began, with EU officials blaming them for helping to cause the crisis and criticizing some recent rating decisions.
On Thursday, Standard & Poor’s said it would likely downgrade the ratings of France, Spain, Italy, Ireland and Portugal if the euro zone slips into another recession, which many economists say they believe is likely.
Mr. Barnier had indicated previously that he liked an idea—originally proposed by International Monetary Fund chief Christine Lagarde when she was France’s finance minister—that the EU should prevent ratings for bailout countries. However, it had been unclear whether he would push for them to be included in the November proposals.
On Thursday, ratings firms said the policy would prove much more disruptive to the markets than any rating could.
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basically they are saying..dont let the world know how bad our debts are because then they wont buy them..well fuck you..you created the ratings agencies and profited from them when you were on winning bets..now they have come back to bring about your demise..suck it up?
401
Yes 401, I agree with you whole heartedly. These rating agencies are now becoming the financial industries (the 1%) worst nightmear. Regardless of their motives…at least they are trying to make them honest. That’s a futile impossibilty,,,the banks and the 1% (with the help of world goverments) will just censor or shut them down. But it is a moot point, the world banks and financial industry will go down anyway, from their own greed. Simple as that…ENJOY.
They wield enormous power.