Representatives from all three rating agencies, Moody’s Investors Service, Standard & Poor’s and Fitch Ratings were summoned to appear in front of a UK House of Commons Treasury Select committee hearing on financial stability and transparency.   Several parliamentarians decided to take a tough line and used insults such as ‘they are an absolute shower” – (English slang for “trash”) and statements “They are all foreigners”.  The latter comment was most likely a reference to the fact that Moody’s had sent two French representatives.  The Financial Times noted that at certain points during the hearing it was clear that the parliamentarians did not fully understand the role of ratings nor the role rating agencies had in the financial system.   Since the EU is holding similar hearings one can only wonder what to expect next.   Source: Financial Times

BIIA Newsletter November – 2007 Issue