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.
Copyright © 2014 euronewsMore about:
- 1Protesters surround EU buildings as anti-TTIP anger voiced in Brussels
- 2Europe’s sex slave shame: is enough being done to fight human trafficking?
- 3euronews discusses Russia with Latvian PM after EU summit ends
- 4New EU food labelling rules
- 5Europe Weekly: EU Investment plans, protesters and parliamentary woes in last show of 2014
- 1Europe’s sex slave shame: is enough being done to fight human trafficking?
- 2Protesters surround EU buildings as anti-TTIP anger voiced in Brussels
- 3Belgium gripped by travel chaos as strike takes hold
- 4Chaos or cohesion: how will Europe respond to a major terror attack?
- 5Last EU summit of 2014 in full swing with major investment tabled
- 1euronews live TV - News | euronews : the latest international news as video on demand
- 2Watch: Passengers ‘push-start’ frozen plane in Siberia | euronews, world news
- 3Le Pen: I admire ‘cool head’ Putin’s resistance to West’s new Cold War | euronews, interview
- 4McCain blasts Europe’s approach to Ukraine conflict ‘a joke’ | euronews, the global conversation
- 5Which countries in Europe cause the most air pollution damage? | euronews, world news
- 6Moldova pro-EU parties take narrow lead in elections | euronews, world news
- 7Grenoble: Europe’s first ad-free city | euronews, world news
- 8NATO joins search for ‘Russian submarine’ off Scottish coast | euronews, world news
- 9European Union News | euronews: latest breaking news and headlines about European Union
- 10Obama’s ‘risky’ immigration gamble | euronews, world news
- 11Ukraine reports accident at Zaporizhzhya nuclear power plant | euronews, world news
- 12Crude awakening: Romania’s Black Sea oil and gas finds fuel Europe’s energy hopes | euronews, reporter
- 13Irony as organised crime prosecutor arrested for corruption in Romania | euronews, world news
- 14The American Century comes to an end as China becomes the world’s largest economy | euronews, economy
- 15International breaking news | euronews online world breaking news in video
- 16Belgium’s former queen Fabiola dies at 86 | euronews, world news
- 17Germans demand honour for Turkish woman beaten to death | euronews, world news
- 18Chechen ‘death’ unit fighting with rebels in eastern Ukraine | euronews, world news
- 19Portugal: Ex-PM José Socrates held in corruption probe | euronews, world news
- 20Pakistan Taliban ‘kill over 100’ in Peshawar school attack | euronews, world news