Rating agencies are the children of Babel
Regulators have called for the rating agencies to form a trade body to represent them. This would make negotiations on reforming the agencies easier. But the agencies are inherently diverse, even conflicting — some, for example, are only paid by investors. Getting them to speak with one voice may be impossible.
At the Global ABS conference in Cannes last week, Michel Prada, the outgoing chairman of the technical committee for the International Organisation of Securities Commissions (IOSCO), beseeched the rating agencies to form their own industry association.
Not a typical thing for a regulator to suggest, perhaps but Prada
Please take a trial or subscribe to access this content.
Contact our subscriptions team to discuss your access: firstname.lastname@example.org
To discuss GlobalCapital access for your entire department or company please contact our subscriptions sales team at: email@example.com or find out more online here.