Credit Rating Agencies Under Severe Pressure
As we continue the blame game on both sides of the Atlantic it seems that the credit rating agencies are next under the hammer with EU and US officials looking at possible prosecutions. The likes of Standard and Poors, Fitch and Moody's are being blamed for a failure to warn investors that the ratings on some of their investments were in trouble.
It is alleged that after the credit crunch began in the US a number of highly rated investment instruments suddenly became untradeable and were affectively worthless. The argument of the EU and US authorities is the allegation that they did not keep sufficient notice of the changes in the market and failed to advise investors accordingly. However, while new laws are set to enter the EU law book and the US authorities look to prosecute some ratings agencies, not everyone agrees that they are to blame.
For the last few years investors have pushed share prices and property prices higher and higher to such a point as the only way was down. Banks and mortgage providers pushed themselves to the limit in their pursuit of profits with many 'making hay while the sun shone'. This reckless pursuit of low margin business to increase profits was a disaster waiting to happen but when it did all go wrong, the speed was somewhat breath taking.
Surely everyone has to take their share of the blame?
Share this..
Related stories
Will alternative energy sources really dominate the UK in the future?
Over the last few days we have seen the UK government highlighting the potential benefits of wind power with over 6,000 new wind turbines expected to be introduced to the shores of the UK over the next 10 years. The government believes that upwards of 50% of UK homes could receive their power from alternative energy sources in the future but there is some confusion and disbelief regarding the figu...
Read MoreUnemployment rises to 1.85 million
12/08/2015 The number of people unemployed in the UK rose in the April to June period by 25,000, taking the current total to 1.85 million. These figures show the first time there has been two consecutive rises in unemployment in the last two years. Youth unemployment also rose to 16% in June, compared to 15.9% between March to May. Many economists now fear that the jobs market may be level...
Read MoreNext drops a bombshell on the UK retail sector
While the UK retail sector is at the moment basking in glory with signs of an upturn, the retail giant Next has somewhat spoiled the party with an indication that the improvement in retail sales in the first six months of this year may not follow through into the latter part of 2009. The company expects sales to drop by between 3.5% and 6.5% in the second half of 2009 which has caught the market s...
Read MoreIs it time to look at equity markets?
This is the six million dollar question and one for which there is no simple answer - what are your investment goals, what is your time scale and what exactly are you looking for?
If you are looking for a short term return then the markets of today could literally make you or break you and have massive risks, if you are looking medium term then there could be some interesting opport...
Pension reforms- the difference between guidance and advice
16/03/2015 Are you clued up on the pension reforms, which are coming into place this April? No? Well, to help with these new pension changes, the Treasury has created a brand new guidance service called Pension Wise. This service is a free and impartial government service that aims to help people understand the new pension options. In the past, if you wanted to talk to someone about you...
Read More