EU's Mcreevy gives until Sep 5 to consult credit ratings agencies regulation

BRUSSELS (Thomson Financial) - The European Commission said interested parties have until September 5 to consult its plans to reform credit ratings agencies (CRAs). EU internal markets commissioner Charlie McCreevy said: 'I am convinced, like others in Europe of the need to legislate in this area at EU level... The crisis has shown that self-regulation has not worked.' 'I am also convinced that excessive reliance on ratings in EU legislation might have discouraged banks and other financial institutions from exercising their own due diligence,' he added. The consultation document also proposes two options for an efficient EU oversight of CRAs: The first option is based on a reinforced co-ordination role for the Committee of European Securities Regulators (CESR) and strong regulatory co-operation between national regulators.... [read full story]