BERLIN (MNI) - EU Justice Commissioner Viviane Reding, in an interview with German daily Die Welt published on Monday, called for drastic steps to curb the "cartel" of the three major rating agencies. "Either the G-20 states jointly decide to smash the cartel of the three US rating agencies -- for example the U.S. could be asked to make six rating agencies out of the [current] three -- or there will be European and Asian rating agencies created," Reding told Die Welt. "It cannot be that a cartel of three U.S. firms decides the fate of whole economies and their citizens," the Commissioner said. Eurogroup chairman Jean-Claude Juncker last week called the downgrade of Portugal by the rating agency Moody's "irresponsible" and "disastrous." http://imarketnews.com/node/33444 I can´t agree more. Get rid off the "rat pack"... Although, these gentlemen preferred to be named that way...
It's rather interesting that the EU Justice Commissioner doesn't know that Fitch is actually owned by the French. At any rate, they are yet again barking up the wrong tree.
The ratings agencies are disposable fall men for the banks and the rest. What an opportunity to setup "fail-safe" ratings agency so the "lollipops and butterflies" story in the markets can gain steam and never be stopped. Same reason why the IMS is being reformed. "We must make sure crises like these never happen again!"
I do see your point Asus. They did it again today. Beating a dead horse to get any bid in our bonds. However they have to clean it up. It only works for a reason.