NAIC decision to stop using rating agencies for RMBS heralds major change for US insurance industry
Concern by the NAIC over the veracity of rating agencies’ analysis of insurers’ RMBS holdings is leading to a shake-up in how these organisations are used in the US. Is this pattern set to be followed in Europe?
The European Commissioner for the internal market and services, Charlie McCreevy, was perhaps the most outspoken of the many regulators and politicians to have criticised the role rating agencies played in the 2008-09 financial crisis.
“There is widespread agreement that rating agencies contributed in a significant way to the financial crisis [by] giving excessively high ratings to dodgy products. And what is worse, [they] did so knowingly,” he said in a speech in May last year, before going on
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