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Rating agencies supervision rules inadequate and unsound

Date

15 Dec 2010

Sections

Euro & Finance

Reacting to Parliament's voting through of a new supervisory system for credit rating agencies, German GUE/NGL MEP Jürgen Klute regretted that serious monitoring of the agencies and provisions for the consistent prevention of conflicts of interests were not foreseen.

The original draft proposed to exert pressure on rating agencies so that they provide ratings independently. There should be valuations available for complex securities beyond those valuations commissioned by the issuer of the securities.

"There is one good point “, summarizes Jürgen Klute, "in the adopted revised version of proposals to monitor rating agencies the new European securities regulatory commission is now responsible for monitoring and permanent registration. “On all other counts the compromise between the Commission, Council of Ministers and Parliament is inadequate.

"Unfortunately an opportunity has been missed to establish a European ratings agency that would have limited the oligopoly of the three existing companies. The GUE/NGL will nevertheless continue to demand strong supervision of these agencies" he concluded.

GUE/NGL PRESS CONTACTS:
David Lundy + 32 485 50 58 12
Gay Kavanagh +32 473 84 23 20
Gianfranco Battistini + 32 475 64 66 28
www.guengl.eu
Gauche Unitaire Européenne/Nordic Green Left
European Parliamentary Group

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