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.
- 1Coordinated terror attacks leave dozens dead in Paris
- 2euronews live TV - News | euronews : the latest international news as video on demand
- 31000-year-old Bible found in Turkey
- 4Bomb and several shootings in central Paris – reports of fatalities and injuries
- 5International news | euronews, latest international news
- 6world Weather | euronews: world ten day weather forecast
- 7Police hunting Paris attacks mastermind battle with suspects in heart of Paris
- 8European Union News | euronews: latest breaking news and headlines about European Union
- 9Humans consume more than planet can produce on ‘Earth Overshoot Day’
- 10International breaking news | euronews online world breaking news in video
- 11latest sci-tech news : euronews : the latest international news as video on demand
- 12Business news and finance news | euronews: international economic and finance news
- 13New temporary spiritual leader of Muslim Brotherhood appointed
- 14Special Reports : euronews : the latest international news as video on demand
- 15‘Anonymous’ hackers’ group declares ‘war’ on ISIL
- 16‘Maxed-out:’ Jordan’s King Abdullah II’s frank warning over Syria crisis
- 17Iraq: deadly car bombs kill more than 60 in Baghdad
- 18Middle East - News | euronews : the latest international news as video on demand
- 19No Comment | euronews: international news images without commentary
- 20Thousands in Bucharest blame corruption for Friday’s nightclub blaze