The USs often-criticised approach to credit rating agency
(CRA) reform has been held up as an example for European
The Securities and Exchange Commissions
encouragement of unsolicited ratings will be more effective
than the European model which focuses on CRA responsibilities,
according to London-based Clifford Chance partner Christopher
Walsh who spoke at the American Securitisation Forums
(ASF) annual conference on Monday January 23.
A more competitive market is what the US is
looking for, whereas the Europeans, somewhat characteristic to
form one would argue, has gone for regulatory control,
CRAs have historically been third party evaluators and
strict regulation can create nervousness over the role they
have to perform. My concern with the European legislation
is that theyre now systematically being...