Dup of MacMicksters thread re EU to regulate ratings agencies

michaels

https://forums.moneysavingexpert.com/discussion/3613023

Don't like what the credit rating agencies have to say about the chances of a country being able to pay back debt of 120% of GDP? Obviously it is time to muzzle the ratings agencies.

http://www.bbc.co.uk/news/business-15739234

What's that? Even though you (despite technical errors) still have a triple A rating you are being charged interest rates as if you were a lot less credit worthy - who can we blame for that - may be it is time to ban short sellers, demand that the central bank buy your bonds and probably insist that all pension funds invest only in your sovereign bonds.

abaxas

You cant make them accountable for mistakes, or they'll just under rate everyone, to cover their !!!!!!.

kbrumann

The ratings, while not infallible are considered useful by investors. It starts getting complicated where funds are set up with rules whereby there holdings must have a certain minimum rating, having to sell their holdings in an already sinking ship. Maybe funds should be more responsible for how they invest our money.

IronWolf

kbrumann wrote: »

The ratings, while not infallible are considered useful by investors. It starts getting complicated where funds are set up with rules whereby there holdings must have a certain minimum rating, having to sell their holdings in an already sinking ship. Maybe funds should be more responsible for how they invest our money.

Exactly, the ratings agencies just provide a service, and if people want to use it they pay for it, if they don't then they don't.

Most investment banks and funds should be doing their own research and not relying on ratings agencies. The ones that dont and get burned deserve to go bust. Nuff said.

purch

Moody's, S&P and Fitch do far more than just issue credit ratings.

No Bank, Investment Bank or other Financial Institution has anywhere close to the resources and ability to cover everything they offer market participants.