Credit Rating Agencies. What Impact Do They Have and Do We Really Need Them?

Business & Finance, Economics, Money & Monetary Policy
Cover of the book Credit Rating Agencies. What Impact Do They Have and Do We Really Need Them? by Alexej Eichmann, GRIN Verlag
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Alexej Eichmann ISBN: 9783668079885
Publisher: GRIN Verlag Publication: November 3, 2015
Imprint: GRIN Verlag Language: German
Author: Alexej Eichmann
ISBN: 9783668079885
Publisher: GRIN Verlag
Publication: November 3, 2015
Imprint: GRIN Verlag
Language: German

Fachbuch aus dem Jahr 2015 im Fachbereich VWL - Geldtheorie, Geldpolitik, Note: 1,3, FOM Essen, Hochschule für Oekonomie & Management gemeinnützige GmbH, Hochschulleitung Essen früher Fachhochschule, Sprache: Deutsch, Abstract: This assignment analyses the impact of Credit Rating Agencies on the financial market focusing on corporate institutions. In the case of Enron, a former American energy, commodities and services company, it received good credit ratings up until four days before bankruptcy. Other examples like Lehman Brothers or WorldCom show, that Moody's, S&P and Fitch still rated these companies as safe investments days before their bankruptcy. Credit Rating Agencies influence about 80% of the world market capital. The industry is dominated by S&P and Moody's which lead to a lack of competition. Ratings have an impact on the overall economic performance, recently proofed by the financial crisis caused in the US subprime mortgage market. The conflict of interest occurs from the issuer-pay model where almost all credit ratings are paid by the issuer of the instrument. CRAs are governed by the International Organization of Securities Commissions (IOSCO) which established a 'Code for Conduct Fundamentals' for CRAs, a voluntary code without enforcement mechanisms. Authorities have responded with a range of regulatory reforms. There is currently no consensus on a common set of reform. The overall rating agencies do not take any responsibility for damage caused to governments or investors.

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

Fachbuch aus dem Jahr 2015 im Fachbereich VWL - Geldtheorie, Geldpolitik, Note: 1,3, FOM Essen, Hochschule für Oekonomie & Management gemeinnützige GmbH, Hochschulleitung Essen früher Fachhochschule, Sprache: Deutsch, Abstract: This assignment analyses the impact of Credit Rating Agencies on the financial market focusing on corporate institutions. In the case of Enron, a former American energy, commodities and services company, it received good credit ratings up until four days before bankruptcy. Other examples like Lehman Brothers or WorldCom show, that Moody's, S&P and Fitch still rated these companies as safe investments days before their bankruptcy. Credit Rating Agencies influence about 80% of the world market capital. The industry is dominated by S&P and Moody's which lead to a lack of competition. Ratings have an impact on the overall economic performance, recently proofed by the financial crisis caused in the US subprime mortgage market. The conflict of interest occurs from the issuer-pay model where almost all credit ratings are paid by the issuer of the instrument. CRAs are governed by the International Organization of Securities Commissions (IOSCO) which established a 'Code for Conduct Fundamentals' for CRAs, a voluntary code without enforcement mechanisms. Authorities have responded with a range of regulatory reforms. There is currently no consensus on a common set of reform. The overall rating agencies do not take any responsibility for damage caused to governments or investors.

More books from GRIN Verlag

Cover of the book Salvador Dalís Destino. Unterschiede in der Darstellung der Zeit in Bild und Film by Alexej Eichmann
Cover of the book Der 'Atomausstieg' in Deutschland aus Sicht der Veto-Player-Theorie by Alexej Eichmann
Cover of the book Unterrichtsstunde zu Gottfried Kellers Novelle 'Romeo und Julia auf dem Dorfe' by Alexej Eichmann
Cover of the book Netzwerküberwachung mit Nagios in einem heterogenen Netzwerk am Beispiel einer Notruf- und Serviceleitstelle by Alexej Eichmann
Cover of the book Die Hospitaliter und das Hospital des Heiligen Johannes zu Jerusalem by Alexej Eichmann
Cover of the book Interkulturelle Kompetenz: Wohin führt dieser Begriff? by Alexej Eichmann
Cover of the book Die demokratischen Rechte der Bürger im Königreich der Niederlande und in der Bundesrepublik Deutschland by Alexej Eichmann
Cover of the book Portfolio Entrepreneurship in Slovakia - Empirical analysis of small and medium sized enterprises by Alexej Eichmann
Cover of the book Kooperation im sonderpädagogischen Handlungsfeld by Alexej Eichmann
Cover of the book Kylonischer Frevel by Alexej Eichmann
Cover of the book Hatte Marx Recht? by Alexej Eichmann
Cover of the book Das Konzept des Chief Information Officer (CIO). Bedeutung aus der Sicht von Wissenschaft und Praxis by Alexej Eichmann
Cover of the book Computerspiele in der Schule - Analyse der Mediennutzung und praktische Begegnung mit Computerspielen der neuesten Generation in einer 5. Klasse by Alexej Eichmann
Cover of the book Geschlechtsspezifische Kommunikation by Alexej Eichmann
Cover of the book Prozesskostenrechnung für öffentliche Verwaltungen by Alexej Eichmann
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy