The president of the European Central Bank said today in a speech that he welcomed the EU legislation going through the motions at present to tighten up on the activities and controls relating to the credit rating agencies.
Perhaps in response to this news, I received a few queries today from a couple of my clients as to how this affects Graydon. I was happy to report that Monsieur Trichet's comments, and new EU law, is targetted at the rating agencies like Moodys and S&P who are in the business of rating financial instruments- the type for instance that came under scrutiny after the sub prime mortgage fiasco lifted off in 2007.The new proposed laws are not aimed at commercial trade credit agencies like Graydon, D&B, Experian etc who are all in the business of rating all kinds of businesses for their trade.creditworthiness. Confusing I know, but even Captain Kirk needed Spock to help him identify different types of life form in the universe- it just so happens there are two distinct life forms as far as rating agencies are concerned in our world- now you know.