Friday, August 17, 2007
The European Union plans to investigate whether U.S. ratings agencies adequately alert investors to risks in the securities markets. This perennial concern was raised in the wake of the deterioration of the market for securities backed by subprime mortgages. The EU cited the conflict of interest created by the agencies being paid by the issuers whose securities they rank. NYTimes, Europeans Plan to Investigate Ratings Agencies and Their Warnings.