Michel Barnier, the European Union’s financial services commissioner, said credit ratings companies should have access to the same information. He was speaking at a press briefing in Brussels today. If a ratings agency uses information for one of its clients “the other agencies must have access to the same information,” he said.
The U.S. Securities and Exchange Commission has issued a report cautioning credit rating agencies about deceptive ratings conduct and the importance of sufficient internal controls over the policies, procedures, and methodologies the firms use to determine credit ratings.
When President Barack Obama signed the Dodd-Frank financial reform bill on July 21, he capped a year-long legislative battle to stop $1.8 trillion in global financial writedowns and losses from happening again.
The Financial Stability Board will suggest rules to limit the influence of credit rating agencies on financial markets by the end of the year, Frankfurter Allgemeine Zeitung said, citing Bank of Canada Governor Mark Carney.