FMLC has responded to:

  • the Commission’s proposals for regulating CRAs. It is concerned the Commission has not clarified the nature and role of CRAs. It points out the purpose and use of high credit ratings and how those who regard CRAs as responsible for the credit crunch have overlooked this. It also feels the proposals create legal uncertainty because they do not tie in with other Directives such as the CRD. Charlie McCreevy thanked FMLC for its views; and
  • the Tripartite consultation on the Special Resolution Regime. It is worried about the “stabilisation” powers the authorities would get and various market risks that might arise. It sees the need for various safeguards that go further than those currently proposed. It also wants public consultation on the safeguards.