The EU is less than pleased to see its pet project (the Euro) so badly mauled by the markets. As such they are looking to lay the blame at people's doors (anyone excpet for those who are responsible for the debt and fraud within the Eurozone).
Prime candidates for retribution are the ratings agencies, who have downgraded certain countries' credit rating.
As such the EU intends to fine the big three credit ratings agencies, and create a new state-backed competitor.
The agencies will be subject to a new European supervisory body with the power to issue fines and suspensions.
Shooting the messenger never works, and the credibility of a state backed ratings agency will be doubted from the very start.
Idiots!
What would be the effect if ratings agencies dropped the euro zone countries from their listings?
ReplyDeletesurely to be compelled at gun point to rate a countries bonds would devalue it even further
You WILL like us, or we'll, erm, get very angry.....
ReplyDeleteI assume the agencies are independent companies, if so what grounds does the EU have for imposing fines on them?
Microdave asked <>
ReplyDelete"Kerching" would seem to be a good and sufficient 'reason'?