How do you say today: "Didn't they see it"? Moody's, Standard & Poor's
And Fitch ranking back to awards (or disgrace) news with gaps
American banks. Until a few hours after the bankruptcy of the moody he gave
Silicon Valley ATM Vote A3 (Medium -High Credit Reliability). AND
bankrupt. "The risk of this bank and others with the model
Similar activities are quite clear, because it is marked with one degree
very high concentration, both in terms of activity and
passivity. This activity model is very risky, "explained Marcello
Messori, Professor of European Economics in Luiss. Reported by
Ranking agent?
Ranking agents have extraordinary strength. They are people who are
Determine market trends, affect distribution
Financial wallet, debt evaluation and capital costs.
Extraordinary power in the hands especially for the three of them: Moody's,
Standard & bad ratings and Fitch controls more than 95% of
evaluation. The first doubt about the date of their work returned to 2001, at that time
Enron scandal. Companies deal with energy services and first
accused of manipulating accounts and using complex financial instruments for
Deceive investors, creditors, and control authority. Approaching
Bankruptcy Enron received a positive assessment from three main institutions
ranking. The peak of mistakes and responsibilities, however, has arrived
with the 2008 financial crisis. "They have a conflicting role:
They arrange and become a consultant at the same time. They have a
an important role in terms of self -regulation, because
Regulations are associated with ranking agent assessments but at the same time
There is no check about the potential conflict of interest. We have
find that very often agents make formal advice or
informal compared to companies to connect rankings on how to issue
certain activities to have high ranking for these activities ",
Mesori explained.
Everyone now agrees in considering Antara ranking agents
The main responsibility for the financial crisis between 2007-2009. There
The Investigation Commission defines them "*the main facilitator of the shoulder rope
Finance* ". Permanent Subcomite for Senate Investigation
America concluded: "*Credit rating AAA Inceccisi
introduce risks in the US financial system and have
Establish one of the main causes of the financial crisis*".
"There are shortcomings in the financial markets of international bonds
three times to that time the broadcasters began to ask for ranking
about the problem of individual obligations. Ranking agent, support
that this will improve market function, they offer
Even consultation on how to issue bonds that can be
Has Tripla A.
Very blurry and complex and not too liquid. This has piled up before
financial crisis and becomes clear then during the crisis, when
High ranking bonds have a zero value ",
Explain Messori
Has set a favorable assessment for bankrupt institutions such as
Lehman Brothers took them to the defendant's counter after the shoulder rope
finance. "There is also a competition problem. If the agency
ranking ranking based on different principles, it is clear that a
Opportunistic behavior. I went to the agency that had criteria
They better adapt to my financial products, to have a greater ranking. AND
This is not good ", continued Messori
With the case of Lehman Brothers and financial shoulder ropes have arrived
The lowest reliability point of the ranking agency. "After in the area
Euro has become a tighter rule. But the market is like that
Complex and evolution required central supervision
Self -regulation, from intermediary institutions. But the problem is
The ranking agent needed by the system must implement it yourself
task by minimizing the interests of conflict and understanding that they play a role
Rules, may not provide ambiguous signals. The solution? A
Increasing rules. Balance between
Merkati evolution, self -regulation and regulation. Must
Create standard. And that is an endless job, because of the market
develop. You don't have to stop. Europe is a place where
Regulations are very effective, compared to the US. In the euro area is not
We can have a SVG case, "concluded Messori