MPs to launch inquiry into ratings agencies

The Treasury Committee is to carry out an inquiry into credit rating agencies, assessing their transparency and whether they have become too powerful.

The inquiry comes as ratings agencies are once again in the firing line in the aftermath of the credit crunch. Having been accused of failing to properly monitor banks and other financial institutions following the Lehman Brothers collapse, they are now facing criticism from a number of countries over the timing of recent downgrades. France, which is yet to lose its AAA-status despite speculation a downgrade is coming, has already vented its anger after Standard & Poor's accidentally downgraded it last month. While the UK also retains its AAA rating for now, the Treasury Committee ...