EU to investigate S&P and other ratings agencies over subprime crisis - report |
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Thu, 16 Aug 2007 08:17
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BRUSSELS (Thomson Financial) - The European Commission is to investigate credit ratings agencies amid growing concern over their slow response to the subprime mortgage crisis, the Financial Times reports.The FT said that officials in Brussls and 'many other critics' believe the ratings agencies failed to act quickly enough in warning investors of the risks of investing in securities backed by subprime mortgages.'The securitised subprime mortgage market would not have grown to the extent that it did without the favourable ratings given by some agencies', a commission official said, according to the newspaper.'If the rating agencies believe this is going to be business as usual, they are very wrong', he added.EU internal market commissioner McCreevy met senior S&P executives last month and expressed his concern about development in the subprime sector.He has invited European securities regulators to meet in September to discuss rating agencies and the problems that have surfaced.The commission is not committed to any course of action and is likely to await the outcome of a review of the International Securities Commission's code of conduct for ratings agencies, expected by April next year, before considering new regulation at the EU level, the paper added.antonia.vandevelde@thomson.comava/ejpCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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Natixis CEO reiterates FY guidance, stressing subprime exposure 'limited' UPDATE 