Saturday, August 18, 2007
Sub-Prime spreads to EU – How long for problems to surface here
The European Commission is planning to review the credit rating industry after suggestions the sector was too slow to warn on the US sub-prime loans crisis, according to The Financial Times. With the weakness in the sub-prime mortgage market sparking fears of a global credit squeeze, Brussels will probe the industry's voluntary code. This code aimed to stop any conflict of interest over the fact credit agencies can be paid by the firms they rule on.