Local view for "http://purl.org/linkedpolitics/eu/plenary/2010-06-15-Speech-2-453"

Predicate	Value (sorted: default)
rdf:type	lpv_eu:Speech2
dcterms:Date	"2010-06-15"^^xsd:date2
dcterms:Is Part Of	lp_eu:Credit rating agencies (debate)2
dcterms:Language	"en"^^xsd:language2
lpv:document identification number	"en.20100615.28.2-453"2
lpv:hasSubsequent	lp_eu:2010-06-15-Speech-2-4542
lpv:speaker	lp:Kay Swinburne2
lpv:spoken text	"Mr President, it was clear very early in the financial crisis that there had been huge failings on the part of credit rating agencies. Hence, it was one of the first things addressed by the EU last year. Updating the directive to cast responsibility for the EU activities of the predominantly US-based agencies is to be welcomed as a move to monitor their activity more closely here in Europe. Credit rating agencies are extremely powerful organisations and have the ability to move the markets with a change of rating. Their independence needs, therefore, to be ascertained and maintained at all times. However, any rating decisions that trigger a flow of billions of euros should not come as a surprise to the market. For example, credit rating agencies should publish their ongoing stress tests and scenario analyses so as to improve market transparency and minimise shocks. However, we must remember what it is credit rating agencies are set up to do: to assess the risk of default of an entity, be it a product or a corporation, especially a publicly listed company including financial institutions or even sovereign states. In the same way that we should not blame credit rating agencies for responding to legitimate information on the state of our banks, we should not use them as an excuse for the market’s reaction to the dire state of our public finances. Although monitoring their activity more closely is to be supported, a more critical proposal needs to be framed around a different question, namely: why have the markets, investors, corporations and sovereign states relied so heavily on credit rating agencies rather than conducting adequate due diligence and collecting information for themselves? In particular, why is the credit rating market dominated by three names when there are many more available to the marketplace? When we have answered these broader questions, then the way credit rating agencies are held to account will become more meaningful. With their great power and influence in the markets, there should also be significant responsibility."@en1
lpv:spokenAs	member; Delegation to the Parliamentary Assembly of the Union for the Mediterranean (2009-09-16--2012-03-27)3 substitute; Delegation for relations with Switzerland and Norway and to the EU-Iceland Joint Parliamentary Committee and the European Economic Area (EEA) Joint Parliamentary Committee (2009-09-16--2014-06-30)3 substitute; Delegation for relations with the Palestinian Legislative Council (2009-10-19--2014-06-30)3 substitute; AFET (2009-09-07--2010-06-23)3 unknown; Conservative Party (2009-07-14--2014-06-30)3 member; ECON (2009-07-16--2012-01-18)3 member; Special Committee on the Financial, Economic and Social Crisis (2009-10-08--2011-07-31)3 member; PECH (2009-07-14--2014-06-30)3
lpv:unclassifiedMetadata	"Kay Swinburne,"1 "on behalf of the ECR Group."1
lpv:videoURI	<go to Events_and_structure europarl>2

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