Credit rating agencies will have to be more transparent about how they assess a country’s sovereign debt under changes agreed by MEPs on Wednesday.
The changes will force agencies to indicate when they publish assessments, publishing ratings only after close of business and at least an hour before EU trading desks open.
Designated rapporteur and Italian centre-left MEP Leonardo Domenici told the European Parliament:
“We are making progress with this new regulation: having a ban on ratings which could influence policies carried out by governments, more transparency and accountability regarding the methodologies used for ratings.”
Credit ratings agencies are under fire because they attributed AAA ratings to US subprime mortgages that turned out to hold only junk status.
Critics also argue that they gave over-generous assessments to the banks that bought and sold those assets in the first place.
That’s why German MEP Wolf Klinz regrets that the new rules won’t change the agencies behaviour.
“They have for a long time after the global financial crisis maintained that they had nothing to do with it. Rather than considering themselves to be primarily a service provider they were only interested in growing their business as quickly as possible.”
Claims that the agencies made a fast buck at the expense of governments mean that for some, even the proposed overhaul doesn’t quite go far enough.
- 1euronews live TV - News | euronews : the latest international news as video on demand
- 2Russian rumour mill suggests Putin suffering poor health | euronews, world news
- 3Slovenia becomes 11th EU nation to approve gay marriage | euronews, world news
- 4[LIVE] Germanwings passenger jet crashes in southern France, 148 people on board – authorities | euronews, world news
- 5Indian rapist says women to blame for being sexually assaulted | euronews, world news
- 6Exclusive: CIA and Mossad are behind Boko Haram and ISIL, says Sudan president | euronews, world news
- 7International news | euronews, latest international news
- 8French Alps plane crash treated as suicide and mass murder by co-pilot | euronews, world news
- 9Why is Bulgaria the EU’s most unhappy country? | euronews, world news
- 10Greece’s claim for war reparations from Germany explained | euronews, world news
- 11eurovibes - a selection of Europe’s best music talent
- 12Reaching new heights: Parents in India scale walls to ‘help students cheat’ | euronews, world news
- 13Tens of thousands march in Moscow in memory of Boris Nemtsov | euronews, world news
- 14Handwriting and the digital age, time for change in schools? | euronews, learning world
- 15London calling: why home-loving Hungarians are flocking to British capital | euronews, reporter
- 16French prosecutor: Germanwings co-pilot appears to have crashed plane deliberately | euronews, world news
- 17Manufacturing jihad – Nicolas Hénin explains what he learned about ISIL | euronews, the global conversation
- 18Germanwings press conference mystery: what wasn’t he supposed to say? | euronews, world news
- 19Which EU country has the biggest gender pay gap? | euronews, world news
- 20Romania left red-faced after France-Germany map gaffe | euronews, world news