Regulating Credit Rating Agencies: The New US and EU Law - Important Steps or Much Ado about Nothing?

Möllers, Thomas M.J.

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Regulating Credit Rating Agencies: The New US and EU Law - Important Steps or Much Ado about Nothing?

Capital Markets Law Journal, Vol. 4, pp. 477-500, 2009

Journal of South African Law (TSAR), pp. 674-696, 2009

24 Pages Posted: 17 Nov 2010 Last revised: 18 Mar 2021

See all articles by Thomas M.J. Möllers

Thomas M.J. Möllers

University of Augsburg - Faculty of Law

Date Written: November 15, 2010

Abstract

This article discusses the different causes of the 2009 financial crisis, in particular the structured finance products (toxic papers), which because of their good ratings were purchased by many banks worldwide.Meanwhile, market participants are no longer allowed to set their own standards, rather the financial markets are being regulated more strongly. The most recent regulatory measures concerning ratings agencies are illustrative of how the American and European legislators attempt to achieve effective control with instruments of the capital market. The results, however, are mixed.

Keywords: Credit Rating Agencies, Toxic Papers

JEL Classification: K 22

Suggested Citation: Suggested Citation

Möllers, Thomas M.J., Regulating Credit Rating Agencies: The New US and EU Law - Important Steps or Much Ado about Nothing? (November 15, 2010). Capital Markets Law Journal, Vol. 4, pp. 477-500, 2009, Journal of South African Law (TSAR), pp. 674-696, 2009, Available at SSRN: https://ssrn.com/abstract=1709361