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McCreevy disappointed on rating agencies compromise

922 views · Published 22 April 2009 · 1:08 · Indexed 20 September 2026

Channel: Euractiv · 2009 · News & Politics

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European Commissioner for Internal Market Charlie McCreevy tells the European Parliament today that he is disappointed with some of the changes adopted by the parliament to the plan to address problems caused by credit rating agencies.

Charlie MC CREEVY, European Commission:

"The agreement reached on a regulation of credit rating agencies will help address one of the problems that contributed to this crisis and thus will offer some prospects to restore market confidence, The EC proposal sets some clear objectives for improving integrity transparency responsibility and good governance of the CRAs"

"I am disappointed with certain aspects of the compromise, the desist of the group support regime which I consider one of the most innovative aspects of the Commission's proposal means that we will not be able to modernise as much as we wanted the supervisory arrangements for insurers and re -insurers operating on a cross border basis, some of the amendments regarding equity risk could result in the introduction of an imprudent regime for investment and risk based capital, this is particularly the case for amendments which we introduced , the so-called duration approach as a Member 's adoption "

background:

Credit Rating Agencies: partially responsible for the current financial crisis 
Jean-Paul GAUZÈS (EPP-ED, FR) for the Economics Committee will be putting forward a legislative report on Credit Rating Agencies.  MEPs and the Council have reached a first-reading deal on this. A credit rating agency (CRA) is a company that provides opinions on the future value of companies, securities or obligations. These ratings, despite being just opinions, are used by investors, lenders, issuers and securities regulators and therefore influence global financial transactions. Given this influence on the financial market, CRAs' decisions have to be taken in transparent and independent way. 
  Solvency II: better financial supervision of the insurance industry 
Peter SKINNER (PES; UK) will be putting forward a legislative report on Solvency II, taking up and pursuit of the business of insurance and reinsurance.  A first-reading deal has been reached with Council. The new legislation seeks to achieve a major overhaul of the supervisory framework to enhance the financial stability of the insurance industry.

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