Europe Launches Ban On All Policy Criticism By Scrapping Use Of Rating Agencies

Tyler Durden's picture

Why are we not surprised? The EU has just voted to scrap the use of ratings agencies in the next step on the road to a ban of all policy criticism. Via Bloomberg,


It seems just a few years ago, when these very same ratings agencies were raising ratings and supporting banking systems, mortgage provision, and sovereign-inclusions-into-monetary-unions, that the political elite could not showing off their bronzed statues of AAA/AA-ness.

And in the most bizarre of twists, they would prefer if they were allowed to rate themselves:


In other words:

I am Herman van Gollum, and I give Spain AAA+++. I would do business with this customer any time.

We only wish we could put this in haiku format.

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fuu's picture

The farce is strong with this one.

IBelieveInMagic's picture

In a way it may be a good thing for investors -- they are now forced to get off their fat asses and do their homework.

Ethics Gradient's picture

Sure, but the ratings will still exist. It'll just mean that greek banks will be able to pledge greek debt to the ECB as collateral for leverage at face value.

This, surely then, is a plan with no draw backs!

I mean, what could possibly go wrong?

hedgeless_horseman's picture



Note to Sean Egan:  Do NOT have unprotected sex in Scandenavia.

Paul Atreides's picture

Perpetuating the ponzi...more groundhog day bullshit. Like anyone but the algo's gives a damn what these rating agencies think. Anyone still left in this market is only giving it approval, pull the fuck out all ready in protest and lets end this paper pyramid of shit.

idea_hamster's picture

I don't understand what the big deal is.  When Argentina recently had an inflation problem, outlawing reports of inflation that contradicted the official figures solved everything.


MillionDollarBonus_'s picture

It's about time that EU officials stood up to these rogue rating agencies. For months now, these agencies have been consistently downgrading the credit of perfectly solvent sovereigns and banks  It was only after the rating agencies and the hedge funds (the 1%) launched their assault on unfortunate countries like Spain and Protugual that this crisis escalated. Finally the people are waking up.

Pladizow's picture

"Money power denounces, as public enemies, all who question it's methods or throw light upon its crimes." - Jennings Bryan

hedgeless_horseman's picture



Europe is Argentina.

Argentine President Cristina Fernandez de Kirchner is facing accusations her administration is seeking to muzzle independent economists for publishing data that runs counter to the government's version of key statistics on economic performance.


...the government filed criminal charges against the managers of M&S Consultores economic consulting firm after several weeks of public arguments over the veracity of competing figures on inflation.

Manthong's picture

How about a new referral site  "Angela's List" dot com? 

for "Ratings You Can Trust"



THX 1178's picture

Triple A-ness and Double A-ness... Marvelous achievement or serious medical condition?

BooMushroom's picture

Nobody did a haiku! You guys are slacking!!

Ostriches in power
Heads buried under fiat
Winter is coming

Paul Atreides's picture

"Finally the people are waking up." - There I fixed it for you.

Divided States of America's picture

Short Moodys (MCO), no need for them anymore in this crooked financial system.

silverserfer's picture

"Fawnlawlrs them fellers waken out sleepin"  Theres I done fixed it fer ya.

The Big Ching-aso's picture



Someone here please lend me a million.  I'm good 4 it.  Honest.   Family references upon request.

financial apocalyptic contagion's picture

read this seriously MDB, but trolling on blogs, especially ZH is a dead art

No1 gives a fuck at your attempts at humor, we are all too busy doing our respective jobs/watching cat videos/ listening to justin bieber whatever the fuck people do

its not worth the effort- Quit

knukles's picture

And some of us really work for a living, too.


But more to the point....
As mentioned above, the ratings agencies will still exist.
And the issuer (exception being Egan, three cheers!) gets paid by the raters.
Hate the rateings, raters and stop paying...
Dimwitted, unintended consequence, trial by fire, no more bribe money...
The EU just bought non-investment grade ratings, wholesale, big time Charley, go fuck yourselves...
Are you people fucking stupid?
Ya'll gotta play some of the fictitious game, folks.
Everybody already knows....
And in any case, nobody's gonna believe the 'New and Improved" EU ratings, rating the EU rate-ability by the Eu ratings agency, if any.


They'd already ignored the whole ratings business by letting the buyers carry all the shit (SHIT) at book...
Why inflame the situation and go to war?

Something about holes and digging..
Something about credibility..

Oh yeah, that Credibility Trap


The Big Ching-aso's picture



The foreseen consequence is that banned rating agencies will now have more influence than ever.  Brilliant.

knukles's picture


Keep your friends close and your enemies closer.
(Kind of an old lesson once again forgotten.)

paddy0761's picture

Sorry MDB, just not credible sarcasm. You are trying too hard; just relax and let the Marxist euphoria wash over you before you post next time. You can do better - I've seen it.

Matt's picture

What do you mean? The truth only affects you if you are aware of the truth. If people stop alerting people to these insolvency problems, they won't become problems. This is all a confidence game, a ponzi scheme. If no one ever panics, the ponzi will not collapse.

If people didn't panic and pull their money out from Bernie Madoff's scheme due to losses outside of that scheme, it would not have collapsed and no one would lose their money.

This is the very reason that starting a bank run is illegal. Causing a panic is the problem, not the fact that there is a reason to panic. Even if panicing is the rational, reasonable thing to do, it is the act of panicing that causes a collapse.

Withdrawing money must soon be restricted, it is the only fair way to ensure that everyone has an equal opportunity to access their money.

No Euros please we're British's picture

roflmfao, that's the best post yet, and Protgual that's a killer. You're better than Frankie Boyle!

Gief Gold Plox's picture

Good one, MDB. I really liked the "perfectly solvent sovereigns" part. Now say that 5 times really fast.

Element's picture

Shit is shit ... why quibble?

strongband's picture

Element: hello again. Shit is shit. The point is, why should anyone listen to agencies now when they never got it right back in 08. Better to remove the problem first. Hopefully they can work out an impartial way of carrying out ratings.

Element's picture

Just have the Pope bless them, then wave the flies away, like he does at mass ... doing god's work stuff ... and instant AAA ratings, for GS to go on about doin' God's work.


strongband's picture
fuu's picture

"For sovereign debt, the parliament’s amendments would require ratings companies to pick two to three dates a year for issuing assessments, with publication outside these dates subject to approval by the European Securities and Markets Authority.

Such ESMA approval would only be forthcoming in cases of “exceptional and unforeseen circumstances,” according to the text of parliament’s amendments. "

"The lawmakers also sought to bolster the commission’s proposals by calling for a ban on mergers between large ratings companies, and for all references to credit ratings to be repealed from EU financial regulation. "

Wrong again strongband.

HoofHearted's picture

strongband, the best ratings are MARKET-IMPLIED ratings. We figure this shit out long before Moody's or D&B or S&P or Fitch do. Now we have market-implied ratings (more or less) from someone who actually has to be right in order to keep in the market. What's that guy's name again? Oh, yeah, Sean Egan. And who is being investigated by the porn-wacthers SEC? That's right. Why?

Well, "Truth is treason in the empire of lies." All credit to RP on the quote.

Ghordius's picture

disagree. in the "old days", yes. yield did mean something, then, and ZIRP-"forever", manipulated CDSs and other derivative markets were unimaginable or just plain illegal.

but today? no. we are in a phase of economic and monetary war. markets? market-implied? those words have lost their previous meaning

the standard keynesian commentators from UK and the US are simply baffled that some core continental europeans refuse to go the easy way and cheat-in-the-proper-and-approved-way and are, on the other side, completely shocked that they prefer their own brands of cheating. or, my goodness, go without too much cheating and face the possibility of restructurations and/or defaults.

Blue Horshoe Loves Annacott Steel's picture

What investor in their right mind wouldn't just resort to NOT buying any of them?

bdc63's picture

for those of you that weren't paying attention, we just passed over the line of "absurd" and into "surreal".

dicktator's picture

In soviet-style-comitee-led brusselaucratic dicktatorship the government rates YOU.


Stalin used to say "there's a man, there's a problem".

silver500's picture

This is censorship is part of the debt slavery process.  Eventually in order for the farce to keep going we need a 100% totalitarian regime, where:


·         It’s a criminal offence to comment on the solvency of nations

·         It’s a criminal offence not to purchase sovereign debt each month

·         It’s a criminal offence to keep money outside the banking system

·         There are no elections

pods's picture

They will never get rid of elections.  


Harvey Lee Oswald's picture


"If voting changed anything they'd make it illegal" -Emma goldman

Mesquite's picture

'Investors'...? What's that..?

CPL's picture

This is the point where gold and silver and oil get reall, really, really expensive btw.


No ratings + No value and that means flight from all paper..

scatterbrains's picture

Or it might also say,  don't test our resolve to prevent you from trying to escape our little fiat ponzi party because if we have to we'll outlaw private ownership of gold too.  Dare us bitchezz!


CPL's picture

Of course they will, but TPTB will have to figure out how to find it without anything mechanical to assist them.


With Oil moving out of the commoditiy class into the a full fledged currency, Governments and Armies of the world better understand one thing.  Print all the money you want for soldiers, tax collectors, assessors, "idea" men but it doesn't matter one bit of difference if the currency you are printing is worthless in comparison to the NEW currency of oil.


Let them print and assume that the status quo remains, reality is illustrating the unkindness of change of energy and economies. Ask India and Pakistan how the green energy revolution is going.


I'll go contrary on that investment to protect my assets and be prepared to fund my own projects and intiatives as required.  In five years five star generals will trade a tank and a platoon for 10,000 barrels of oil.

TJ00's picture

Too much work, just sell everything, quickly!

beaker's picture

oh sweet Jesus! We're deep in the Twilight Zone now.

vast-dom's picture

perhaps there will never be anything less than a melt up in the markets, forever and ever since the paper rumor idiocy contagion is all that's left.

slaughterer's picture

Watch Obama do the same in a week or two, with the full blessing of all of Congress.   USA = AAAAAAA overnight

Alpo for Granny's picture

Ratings agencies are to banks/countries as PM's are to ______________.

A) Spiderman Towels

B) Thingamajigs

C) Fiat Money

D) JC Penny Stock

E) None of the above-All your ratings are belong to us.

TheFourthStooge-ing's picture

Alpo for Granny said:

Ratings agencies are to banks/countries as PM's are to ______________.

A) Spiderman Towels

B) Thingamajigs

C) Fiat Money

D) JC Penny Stock

E) None of the above-All your ratings are belong to us.

Answer: F) Pimps

because pimps like to own PMs.

BTW, it's summertime, so give Granny some Gaines-Burgers® to throw on the grill.