EU To Probe Credit Rating Agencies

Law360, New York (August 16, 2007, 12:00 AM EDT) -- The subprime mortgage crisis has prompted a European Commission investigation into credit rating agencies, with regulators pledging to look into the agencies' slow response to the situation.

The Commission said on Thursday that it would ask the Committee of European Security Regulators to review the agencies' reaction to the mortgage market crisis. Regulators have expressed concern that the agencies should have warned investors sooner about the risks that accompany the purchase of mortgage backed securities.

Internal Markets Commissioner Charlie McCreevy has asked to meet with CESR...
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