Local view for "http://purl.org/linkedpolitics/eu/plenary/2010-12-14-Speech-2-510"
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"en.20101214.37.2-510"2
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"Mr President, Mr Chastel, Commissioner, here we are in the third act of the financial legislation for 2010. Following supervision, following the directive on alternative investment fund managers, we are once again looking at credit rating agencies. I say ‘once again’ because Europe has not been slow in bringing in a regulation in this area which was conceived in 2009 and which is now taking effect.
I believe that, by establishing European supervision of credit agencies, we are taking a big step along the same lines as the supervision arrangements that have been implemented. I now want to thank the Belgian Presidency for its tireless efforts on the financial dossiers, you and your teams, Commissioner, and, obviously, my fellow Members in the European Parliament who participated in this study and who supported our positions.
Credit rating agencies, in general, issue opinions, literally in the form of ratings, on the creditworthiness of businesses and states and on complex financial products. The rating reflects an assessment of the risk of issuers of financial instruments not being able to honour their debts. These agencies have gradually become very important in the financial world, for a variety of reasons.
First, ratings are taken into account in banking regulations in order to determine the amounts of own funds that will be used to back investments. The second reason is that ratings have been a factor in the success of issues, since they have become a major indicator for investors.
Yet, although credit rating agencies were not the main cause of the recent financial crisis, they did have a harmful influence. Indeed, they underestimated the probability that issuers of certain complex financial instruments would default.
Faced with the need to restore confidence in the markets and to strengthen protection for investors, in 2009, the European Commission proposed a mechanism for monitoring and supervising credit rating agencies. Thus, in the same year, Regulation (EC) No 1060/2009 on credit rating agencies was adopted.
During the debates in the European Parliament preceding the adoption of this regulation, your rapporteur stressed the need for EU-wide joint oversight of credit rating agencies’ products and integrated supervision of them. At the time, European supervision of this type was legally impossible. However, the Commission undertook to draft a legislative proposal along these lines, and you, Commissioner, kept this promise.
The agreement reached between the Council and the European Parliament on the architecture of European supervision, which will enter into force on 1 January 2011, now makes the effective implementation of rating agency supervision possible.
It is stressed in the Regulation establishing the European Securities and Markets Authority that this authority will exercise its own supervisory powers in relation, in particular, to credit rating agencies. That was the objective of the additional amending regulation on which we reached an agreement and on which we will vote tomorrow.
What I wanted – and my colleagues supported this request – was for the other issues relating to credit rating agencies, allocation of sovereign debt, remuneration schemes and competition, to be postponed and dealt with in a study taking the form of an own-initiative report, which will precede the legislative proposal that you are due to make in the first half of 2011 and for which you have launched a consultation."@en1
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