EU proposes crackdown on ratings agencies after 'serious mistakes'

The European Commission (EC) has proposed a crackdown on ratings agencies such as Standard & Poor's (S&P) and Moody's which would see them held accountable for mistakes and ensure they followed stricter rules.

Coming just a week after S&P mistakenly told some of its clients France had lost its AAA status, the Commission proposed a number of sweeping changes which would see stricter rules come in for credit rating agencies that rank countries' and companies' debt. It said agencies should be more transparent about their ratings and be held accountable for any mistakes they make. The EC's internal market commissioner, Michel Barnier, said the ratings had a serious and widespread effect on individuals. "Ratings have a direct impact on the markets and the wider economy and thus on the prosper...