Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Euronext Paris  >  Fimalac    FIM   FR0000037947

FIMALAC (FIM)

SummaryQuotesChartsNewsCalendarCompanyFinancialsRevisions 
News SummaryMost relevantAll newsSector newsTweets 

EU watchdog allows U.S. ratings use in Europe

share with twitter share with LinkedIn share with facebook
share via e-mail
0
03/15/2012 | 02:23pm CET

The European Union's markets watchdog said on Thursday it would allow the continued use of U.S. credit ratings in the 27-nation bloc as regulators tighten scrutiny of a sector partly blamed for the financial crisis.

The decision is a relief for banks in Europe, large users of ratings from the United States, which feared big costs from having to find alternative ratings for calculating their regulatory capital buffers.

The European Securities and Markets Authority (ESMA) said it had ruled that the regulatory regime for credit rating agencies in the United States, as well as Singapore, Canada and Hong Kong, are in line with rules in the EU.

The ruling was necessary for the continued use of ratings from those countries in the EU after an April 30 cut-off date. Ratings from Japan and Australia had already been approved.

"By allowing EU-registered credit rating agencies to endorse credit ratings issued by credit rating agencies based in the USA, Canada, Hong Kong and Singapore, ESMA today takes a major step towards the international convergence of credit rating agencies' oversight," ESMA Chairman Steven Maijoor said in a statement.

Mark Bearman, a director at the Association for Financial Markets in Europe, a banking lobby, said the ruling will avoid the potential for multiple increases in capital requirements at banks, which are calculated using ratings.

"The inability of banks to use ratings from these third-country jurisdictions could also have led to increased concentration risks, unintended consequences for the management of liquidity and the non-viability of some business models, so this is good news for the industry and alleviates much of the impending market disruption," Bearman said.

AFME would also like the green light for ratings from Mexico, Brazil and Argentina, which still face an end of April cut-off.

ESMA said it was working, where possible, to finalize its assessments of regulatory regimes in the three countries.

"However, it is currently not possible to anticipate whether this can be finalized for all of the three countries... by that deadline," ESMA said.

World leaders agreed in 2009 to force rating agencies to obtain authorization and undergo direct supervision.

It was part of a crackdown on the sector which was criticized for giving high ratings to products based on sub-prime U.S. home loans that defaulted and helped to spark the global financial crisis.

(Reporting by Huw Jones; Editing by Will Waterman and David Cowell)

By Huw Jones

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on FIMALAC
2016 FIMALAC : Revenue for the first nine months of 2016
2016 FIMALAC : PSG launches ambitious eSports project on League of Legends
2016 FIMALAC : Interim Financial Report June 2016 on the website
2016 FIMALAC : First Half 2016 consolidated income statement and balance sheet
2016F MARC DE LACHARRIERE FIMALAC SA : half-yearly earnings release
2016 FIMALAC : Firs Half 2016 Revenue
2016 FIMALAC : EU securities watchdog fines Fitch Ratings 1.38 million euros
2016 FIMALAC : Press release following Board of Directors
2016 FIMALAC : Share Buyback Offer is successfull
2016 FIMALAC : 2015 Annual Report on website
More news
Sector news : Holding Companies - NEC
01/13 Lies or banter? Ex-Jefferies trader's fate lies with jury
2016DJFinance Watch -- WSJ
2016DJHot Stocks to Watch in the U.S. and Canada
2016 EXCLUSIVE : Folger Hill seeks cash infusion after losses - sources
2016DJSAMSUNG ELECTRONICS : Heir Rejects Claims Company Paid Kickbacks
More sector news : Holding Companies - NEC
Advertisement
Financials (€)
More Financials
Chart FIMALAC
Duration : Period :
Fimalac Technical Analysis Chart | FIM | FR0000037947 | 4-Traders
Full-screen chart
Technical analysis trends FIMALAC
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Technical analysis
Income Statement Evolution
More Financials
Consensus 
Mean consensus
Number of Analysts
Average target price -
Spread / Average Target -100%
Consensus details
Managers
NameTitle
Marc Ladreit de Lacharrière Chairman & Chief Executive Officer
Jean-Charles Henri Naouri Independent Director
Philippe Lagayette Senior Independent Director
Jérémie Ladreit de Lacharrière Director
Eléonore Ladreit de Lacharrière Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
FIMALAC13.70%3 237
CK HUTCHISON HOLDINGS ..3.27%45 349
HAL TRUST-1.12%14 924
SK HOLDINGS CO LTD--.--%13 194
REMGRO LIMITED-2.97%8 685
KINNEVIK AB1.88%6 934
More Results