EU Parliament backs tighter rules for rating agencies
The European Parliament yesterday (23 April) adopted a law that introduces mandatory registration and supervision of credit rating agencies for the first time.The sector has been criticized for being too slow to warn investors of the risks in securitized products, which have become largely untradable in the credit crunch despite having had high ratings. "This is one of the tools to respond to the crisis," French centre-right MEP Jean-Paul Gauzes said. Parliament voted externally in favor of the draft law with 569 for and 47 against, amid four abstentions.
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