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EU Prepares Law To End Influence Of Rating Agencies, Tells Banks To Police Themselves

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Mon, 07/11/2011 - 10:10 | 1443466 Translational Lift
Translational Lift's picture
EU Prepares Law To End Influence Of Rating Agencies, Tells Banks To Police Themselves


HAHAHAHAHAHAHA............The end is near!!!

Mon, 07/11/2011 - 11:30 | 1444000 IQ 145
IQ 145's picture

 I like your screen name; it's one of those engineering phrases that brings your reading of the textbook to slow crawl while you try figure out exactly wtf they're talking about. The name of the thing itself has always delighted me also, "rotating wing aircraft"/ yeah, great. The craziness is built in. I committed aviation many times and lived to tell about it but only in "real aircraft" that have those wonderful strong metal wings you can see out the window that hold my poor fragile white ass up.

Mon, 07/11/2011 - 12:01 | 1444153 Panafrican Funk...
Panafrican Funktron Robot's picture

Wonders aloud whether this will include Dagong.

Mon, 07/11/2011 - 12:10 | 1444186 Quaderratic Probing
Quaderratic Probing's picture

The Emperor has banned mirror stores........

Mon, 07/11/2011 - 10:08 | 1443467 the not so migh...
the not so mighty maximiza's picture

Things must be pretty bad.

Mon, 07/11/2011 - 10:30 | 1443593 Sudden Debt
Sudden Debt's picture

it's just preemptive...

Just look at those euro coins! They look like gold coins!


We've got all sorts!

We've got the Greece eurocoins where rates are at 20%

Italian where rates are at 12%

and German once... they aren't worht that much because the rates are pretty low on those....


Mon, 07/11/2011 - 10:08 | 1443468 A Man without Q...
A Man without Qualities's picture

What's this - the idiots guide to starting a bank run?  

Mon, 07/11/2011 - 10:33 | 1443610 IQ 145
IQ 145's picture

 LOL. That's clever. There's a book called "the tradgedy of the Euro"; that explains the genesis of the common currency and the mechanisms of it's European Central Bank, (some missing, and some non-functional); what we have already seen is that their very brave and strict rules that gave wealthy investors confidence in them have been thrown out and now they just react to crises, and "print to order"; and yes, it doesn't seem like a very confidence inspiring anouncement. 

Mon, 07/11/2011 - 10:08 | 1443469 williambanzai7
williambanzai7's picture

Who has the copy right on AAA?

Mon, 07/11/2011 - 10:10 | 1443484 Jim in MN
Jim in MN's picture

The American Automobile Association?

Mon, 07/11/2011 - 10:16 | 1443510 the not so migh...
the not so mighty maximiza's picture

American Avalanche Association?

Mon, 07/11/2011 - 10:23 | 1443543 Jim in MN
Jim in MN's picture

A-1 Apocalypse Assayers?

Mon, 07/11/2011 - 10:24 | 1443549 Cassandra Syndrome
Cassandra Syndrome's picture

American Alcoholics Association?

Mon, 07/11/2011 - 10:28 | 1443576 Cone of Uncertainty
Cone of Uncertainty's picture

Asshat Association of America

Mon, 07/11/2011 - 10:37 | 1443624 IQ 145
IQ 145's picture

There was a rumor once that "Moodys" had a big rubber stamp that said AAA on it and they just flipped through piles of proposals and bonds, and stamped everything within reach; the desk, the telephone, the back of their hand, etc. It would make a nice cartoon video, I think.

Mon, 07/11/2011 - 13:33 | 1444513 macholatte
macholatte's picture


suggestion: just change the faces and it's deja vu all over again


Mon, 07/11/2011 - 10:08 | 1443471 NoRestForTheWicked
NoRestForTheWicked's picture

EU needs to go easy on the ouzo.

Mon, 07/11/2011 - 10:28 | 1443474 MsCreant
MsCreant's picture

Lawyer up bitches! We got contracts to rewrite. 

Edit: Isn't this the criteria that many contracts use to help determine if a the collateral is no good anymore and the loan needs to be called in? I'm pissed if I am holding one of those contracts.

Mon, 07/11/2011 - 10:45 | 1443668 IQ 145
IQ 145's picture

 Yes, it has a "quasi-legal" status. your retirement fund, or whatever, may be prohibited from owning things that didn't get the AAA stamp. In the case of the Banks it's like the American "well, just mark the value to whatevah"/ with reference to the "capital reserves" that the bank holds. The ECB anounced a while ago that would buy Greek Bonds, "no-matter what they were rated"; basically admitting defeat in this attempt to do the impossible. The Euro was engineered by a couple of French Socialists in order to avoid the ongoing embarrassment of French Franc devaluations in the face of the relatively more stable Deutschmark; it worked fine for its intended purpose, printing as much money units as "necessary" for the various social services; the problem is that it's intended purpose was bullshit; and that is now coming home to roost.

Mon, 07/11/2011 - 10:09 | 1443475 Deepskyy
Deepskyy's picture

Just... wow.  This is so moronic that I'm having trouble finding the right bitingly sardonic quip to respond with. 


Mon, 07/11/2011 - 10:09 | 1443477 Paralympic Equity
Paralympic Equity's picture

Is today the 1st of April? Am I missing something?

Mon, 07/11/2011 - 10:09 | 1443478 Jim in MN
Jim in MN's picture

We need more discussion of when it becomes impossible for US funds to hold European assets. No investment-grade rating = no investment, in many quarters of the market.

Someone sneak a question in to PIMCO on this.  Or CALPERS.  Or Vanguard.

Mon, 07/11/2011 - 10:13 | 1443481 TruthInSunshine
TruthInSunshine's picture

When all you possess is a hammer, every problem looks like a nail.


Barnier may want to reconsider his statements, also. Shooting messengers publicly does little to shore up what little CONfidence remains.

*Even if some of the messengers (Fitch, Moody's) are wholly and entirely incompetent/criminal.

Mon, 07/11/2011 - 10:10 | 1443482 Caviar Emptor
Caviar Emptor's picture

Gloves are coming off

Mon, 07/11/2011 - 10:10 | 1443483 oogs66
oogs66's picture

this is a healthy sign - NOT!  I'm not even sure you get a pop on in the market on this news before banks sell off.  I hate the rating agencies, and think that the regulators have relied on them too much, but a knee jerk reaction like this smells of desperation.

Mon, 07/11/2011 - 10:11 | 1443487 metastar
metastar's picture

More extend and pretend. Allows banks to turn junk into gold. Its the Midas touch!

Mon, 07/11/2011 - 10:12 | 1443493 Caviar Emptor
Caviar Emptor's picture

Flash: My own rating agency has upgraded my performance

Mon, 07/11/2011 - 10:15 | 1443505 TruthInSunshine
TruthInSunshine's picture

I just told a client dealing with a bank on a commercial workout to tell them that he is rejecting their version of reality regarding his fiscal soundness, and replacing it with his own.

I do hope this ploy works and/or buys him more time.

Mon, 07/11/2011 - 10:17 | 1443513 wandstrasse
wandstrasse's picture

am I right, now your own central bank can print some more yummy money for you!!

Mon, 07/11/2011 - 10:12 | 1443494 Me XMan
Me XMan's picture


Mon, 07/11/2011 - 10:14 | 1443497 aVian
aVian's picture

freaking priceless...hope you got gold or silver

Mon, 07/11/2011 - 10:20 | 1443527 Central Wanker
Central Wanker's picture

Nope. Gold has been rated Junk by the EU.

Mon, 07/11/2011 - 10:14 | 1443498 johngaltfla
johngaltfla's picture

GOOD IDEA! Should have let WaMu regulate themselves too!


Ooops. We did. That didn't work either....

Mon, 07/11/2011 - 10:43 | 1443659 riley martini
riley martini's picture

  Ha! WaMu had a AAA rating bougyt and paid  for with share holder  money . Other AAA frauds Fannie Freddie.

Mon, 07/11/2011 - 10:14 | 1443500 averagejoe
averagejoe's picture

Desperate re-arranging of the deck chairs on the Titanic.

Mon, 07/11/2011 - 10:17 | 1443516 Catullus
Catullus's picture

You may only price risk based on what we tell you to price that risk.

Of course gold has no counterparty, so holding on it as your reserves is not subject to this decree. Just a thought.

Mon, 07/11/2011 - 10:17 | 1443518 carlo
carlo's picture

 "the European ponzi is unravelling faster than Lady Gaga's costume at next year's VMA" ....lol

Mon, 07/11/2011 - 10:18 | 1443519 MsCreant
MsCreant's picture

Remember when they changed the US Bank regs so that they marked their assets to model, instead of marking them to market? That was balls to the wall outrageous and no one did anything about it. This is just as outrageous, will anyone do anything about this? I bet not.

Accounting Gimmikz...

Mon, 07/11/2011 - 10:53 | 1443717 IQ 145
IQ 145's picture

 Yes, It seems to be kind of a trans-atlantic infection of the same disease. I would say, that some people did do something about it; they lowered their expectations for, and their confidence in, the banking/financial sector and changed their savings into Gold and Silver; and this process will probably be ongoing.

Mon, 07/11/2011 - 10:18 | 1443520 wandstrasse
wandstrasse's picture

as I already posted, according to the EU constitution, sovereign default is FORBIDDEN. They just comply with legislation, I do not know what this fuzz is about.

Mon, 07/11/2011 - 11:00 | 1443774 IQ 145
IQ 145's picture

 Yes. Well, sovereign default is not necessary to wreck a Fiat monetary system. a.), and b.) changing the rules for your banks is not good for confidence, or public opinion. Well, not perhaps public opinion, but let's say the opinion of the wealthy. c.) these kinds of accomodation usually inflationary. 

Mon, 07/11/2011 - 10:19 | 1443524 camoes
camoes's picture

Shoot the messenger! Oops, just shot my foot instead, I'm bleeding...help ECB plz help me...what a world, what a world....

Tue, 07/12/2011 - 09:31 | 1447435 Urban Redneck
Urban Redneck's picture

Glocks will do that

Mon, 07/11/2011 - 10:19 | 1443525 ZackAttack
ZackAttack's picture

Instead of focusing on the problem, they marginalize those who merely point out the problem.

It's not like the ratings agencies are actually any good at that, even.


Mon, 07/11/2011 - 10:21 | 1443532 Vergeltung
Vergeltung's picture

the emperor has no clothes!!

Mon, 07/11/2011 - 10:26 | 1443562 wandstrasse
wandstrasse's picture

he still has clothes on, but they are cheap and ugly.

Mon, 07/11/2011 - 10:37 | 1443622 TruthInSunshine
TruthInSunshine's picture

And made in Bangladesh or Sri Lanka (no offense whatsoever to Bangladeshans or Sri Lankans; just pointing out the irony of what would be - you know - sweat shop made clothing for the emperor and such).

Mon, 07/11/2011 - 10:21 | 1443533 alien-IQ
alien-IQ's picture

Banks policing themselves...what can possibly go wrong with that?

Mon, 07/11/2011 - 10:22 | 1443538 Silverhog
Silverhog's picture

Calling all Bozo's. This is beyond hilarious.

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