{"product_id":"credit-rating-agencies-what-impact-do-they-have-and-do-we-really-need-them-von-alexej-eichmann","title":"Credit Rating Agencies. What Impact Do They Have and Do We Really Need Them?","description":"\u003cp\u003eFachbuch aus dem Jahr 2015 im Fachbereich VWL - Geldtheorie, Geldpolitik, Note: 1,3, FOM Essen, Hochschule für Oekonomie  \u0026amp; 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\u0026amp;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\u0026amp;P and Moody's which lead to a lack of competition.\u003c\/p\u003e\u003cp\u003e\u003c\/p\u003e\u003cp\u003eRatings 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.\u003c\/p\u003e\u003cp\u003e\u003c\/p\u003e\u003cp\u003eAuthorities 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.\u003c\/p\u003e\u003cdiv class=\"aw-variant-hidden-subtitle-div\" id=\"aw-variant-subtitle-9783668079892\"\u003e\u003ch3\u003e\u003c\/h3\u003e\u003c\/div\u003e","brand":"Libri","offers":[{"title":"Softcover - 9783668079892","offer_id":39436630556765,"sku":"9783668079892","price":18.95,"currency_code":"EUR","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0940\/0622\/files\/24d614b5-3c5b-4bed-a705-ea63226aa82c.jpg?v=1778303350","url":"https:\/\/shop.autorenwelt.de\/products\/credit-rating-agencies-what-impact-do-they-have-and-do-we-really-need-them-von-alexej-eichmann","provider":"Autorenwelt Shop","version":"1.0","type":"link"}