Solace Questions Role Of Ratings Firms In Bank Crisis

摘要

Council chief executives have attacked the role of credit ratings agencies in the Icelandic banking debacle, claiming they had inadequate information for crucial investment assessments. A submission by SOLACE, which represents town hall chiefs, to a House of Commons inquiry into the banking scandal, questions the dose relationship between banks and credit ratings firms. It also calls on ministers to protect public bodies from banking losses in the same way they have guaranteed consumer deposits. Councils have almost /900m frozen in defunct Icelandic accounts. Amid criticism of town hall investment strategies, however, SOLACE has joined the LGA for a review of the role played by credit ratings firms, which continued to judge Iceland's banks as strong investments, days before they collapsed.