What Causes The Red Lines On Rear Projection Tv

A rating is helpful - but not

It was once a cozy a rating agency to manage than today. Ever since the financial crisis, the international agencies are under fire. Also by legal means: now piling up around the globe, the lawsuits against Moody's, S & P or Fitch. In most cases, the failure of the agencies in the valuation of investment securities during the financial crisis is the focus. But now a English lawyer is challenging the big three industry giants, because he was "dubious machinations" in connection with the demotion of Spain under the assumed debt crisis.

Gonzalo Boye, who had also complained ever in terms of Guantanamo to the U.S. government, indicated in an interview with the Spiegel here, it's that a few could benefit from the downgrading of the English bonds " in front of them knew. " If that is correct, that would be really a serious case of insider trading, which will be detected and pursued.

But what about the liability for false ratings? In the U.S. and Germany try to investors with millions or even billions of complaints their losses in connection with the Lehman bankruptcy by Moody's, S & P or Fitch to get back - so far without success.

But the confidence is gone. The U.S. Securities and Exchange Commission showed their displeasure over the various agencies and then took some securities from the rating requirement. And the agencies themselves? They play their role down there. "Moody's has long warned in regulatory matters to place undue reliance on ratings" as a opinion of Moody's over the "Manager Magazin" .

Yes we really still need for rating agencies, if they themselves to advise their verdict not to take too seriously? Well already, because they facilitate private investors and professional investors, the pre-selection of securities. But this can not a healthy dose of skepticism about the agency's seals replace, nor the preoccupation with their own investments. Agencies often react only with a delay of worsening conditions.

And in a Moody's Law: If the legislature to bind its rules for investments by financial firms on ratings, it will quickly become very dangerous times - at least, this finding should politicians learned from the financial crisis.