Transparency and reliability of international credit rating agencies
3.7.2012
Question for written answer E-006660/2012
to the Commission
Rule 117
Georgios Papastamkos (PPE)
The Head of the European Securities and Market Authority has been quoted by the European press as indicating that three international credit rating agencies are under investigation regarding the transparency and rigour of their procedures and methods.
In exercise of parliamentary control, a number of questions have been submitted to the Commission over the last six years (E‑0212/2006 of 17 January 2006 concerning the reliability of credit rating agencies,
H‑0984/2008 of 2 December 2008 concerning Commission responsibility for the regulatory framework governing credit rating agencies, H‑0124/2010 of 4 March 2010 concerning the creation of a European credit rating authority and E‑3984/2010 of 7 June 2010 concerning the oligopoly of international credit rating agencies). These questions touched on various aspects of the general problem of international credit rating agencies and the operation thereof. In December 2008 the Commissioner who was then responsible, Charlie McCreevy, referred to unsatisfactory management, conflicts of interest, flawed methodology, lack of transparency and unsuitable internal administrative procedures. In this connection, Commissioner Michel Barnier gave an undertaking to introduce a more stringent regulatory framework regarding rating agencies.
In view of this:
- 1.Almost four years after the above statement by Mr McCreevy and six years from the onset of the US financial crisis, the EU is still investigating. How is it possible a full six years on to justify its failure to exercise effective supervision of international credit rating agencies?
- 2.Should allegations of lack of transparency and flawed procedures in respect of international credit rating agencies prove true, what specific measures are envisaged to remedy matters?
- 3.Given that the downgrading of state securities and banks has caused incalculable damage in both economic and social terms in a number of Member States, will the EU take action regarding international credit agencies whose methods and practices turn out to be non-transparent and unreliable?
OJ C 263 E, 12/09/2013