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Full-Text Articles in Law
The European Aspects Of Global Financial Developments, Virag Ilona Blazsek
The European Aspects Of Global Financial Developments, Virag Ilona Blazsek
The Journal of Business, Entrepreneurship & the Law
What is the position of Europe—and specifically the European Union (EU)—on the world map of global finances in 2017? This comment seeks to answer this question by focusing on three key issues. First, it analyzes Europe’s post-2008 bank bailouts, its sector-wide rescue packages, and its consequential sovereign-debt crisis. Second, it considers the role of the international credit rating agencies and asks why Europe does not have a large rating agency of its own. Third, it assesses the EU’s major recent regulatory developments related to the financial sector. There is no doubt that Europe is in a sustained economic and political …
Credit Rating Agency Review Board: The Challenges And Implications Of Implementing The Franken-Wicker Amendment To Dodd-Frank, Christopher R. Dyess
Credit Rating Agency Review Board: The Challenges And Implications Of Implementing The Franken-Wicker Amendment To Dodd-Frank, Christopher R. Dyess
The Journal of Business, Entrepreneurship & the Law
The purpose of this paper is to analyze, critically review, and determine whether a hypothetical credit rating agency board, as suggested in the Franken-Wicker Amendment to the Dodd-Frank Act, is a viable option for combating the conflict of interest problem between credit rating agencies and issuers. Research methodology includes a careful review of various ways to structure the board and the potential unintended consequences of doing so. The Author uses original research hand-collected from video of the Credit Ratings Roundtable conducted in Washington D.C. on May 14, 2013. The Credit Ratings Roundtable brought together experts from the credit rating industry …
The Rating Agencies: Where We Have Been And Where Do We Go From Here?, Joshua D. Krebs
The Rating Agencies: Where We Have Been And Where Do We Go From Here?, Joshua D. Krebs
The Journal of Business, Entrepreneurship & the Law
The credit rating agencies are supposed to be gatekeepers to the public securities markets. As “gatekeepers,” they are reputational intermediaries in the investment process. Other gatekeepers include: independent auditors, credit rating agencies, securities analysts, investment bankers, and attorneys. The function of these reputational intermediaries is to act as neutral third party advisors to the investment process. While these intermediaries are paid for their opinions by one or more parties to a transaction, in theory the opinions will be neutral. This is due to the thought that any resulting reputational damage from non-neutral opinions would severely damage long-term profitability, in exchange …