
McCreevy vows to regulate credit rating agencies
Daily news headlines
BRUSSELS – Charlie McCreevy believes a regulatory solution is necessary for the reform of credit rating agencies (CRAs). The European commissioner for the internal market, speaking last week at the Centre for European Policy Studies, said he is not persuaded by voluntary self-regulation and will instead seek “external oversight” for CRAs.
McCreevy said he remains unconvinced by the conclusions of the Committee of European Securities Regulators (CESR) and the European Securities Expert Market Group (ESME), or the reforms of the CRAs themselves. “I want to thank both CESR and ESME for their valuable work even if I do not agree with all of their conclusions,” said the commissioner.
“While some of the additional steps that the main rating agencies have announced are welcome, they are insufficient,” said McCreevy. “This is one of many reasons why I have concluded that a regulatory solution at European level is now necessary to deal with some of the core issues.”
The International Organisation of Securities Commissions (Iosco) – previously dubbed a “toothless wonder” by McCreevy – has sought reform to the industry code to offset demands for regulation. “I am not persuaded that the appropriate response lies in strengthening the voluntary framework established by the Iosco code,” said McCreevy.
“I intend to propose in October a registration and external oversight regime for rating agencies, whereby European regulators will supervise the policies and procedures followed by the CRAs. Reforms to the corporate and internal governance of rating agencies will form a part as well,” he said.
The commissioner said the current crisis has been “a reality check” for the financial system and that supervisors must be up to the job, as he prepares to take the initiative in October.
“I also want to make it clear that I see no point in regulating to give supervisors more powers if they are not financed and equipped to recruit and develop more expertise – especially in the field of structured finance.”
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on People
People: More Goldman sackings, Citi promotes for Emea, and more
Latest job news across the industry
Asia moves: senior hires at Societe Generale, Deutsche Bank and more
Latest job news from across the industry
People: Credit Suisse’s FX revamp; Barclays hires co-heads; and more
Latest job changes across the industry
Asia moves: senior hires at Natixis CIB, Citi and more
Latest job news from across the industry
People: LME chair quits, Goldman and BlackRock lay-offs, and more
Latest job changes across the industry
Asia moves: Citi and Deutsche Bank make senior hires, and more
Latest job news across the industry
People moves: Capitolis lay-offs, UBS’s new risk chief, and more
Latest job changes across the industry
Capitolis cuts workforce by 25% as bear market bites
Recent senior hires including James Kibbe and James Reilly are among the departures