|
|
Appearing before the Treasury Select Committee (TSC) today to discuss the Financial Stability Report, King was asked whether he believed there were "rogue" ratings agencies. Although he insisted there had never been a suggestion of criminal behaviour by agencies, he said some had got "carried away...by the hubris surrounding the financial sector before the crisis" and then "rushed in to be the first to downgrade".
He added that the Bank of England was leading the way in not using ratings as a "mechanical" basis from which to extend finance, and urged other central banks to do the same.
"The best way of dealing with this is for public authorities around the world to be seen to rely far less on ratings than they do", he explained.