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The principal agent problem is one of the major issues of the credit rating agency market. Is it possible to solve the prevailing incentive problem of the market and contemporaneously satisfy the reputation demand of the investors? This paper presents an option for regulating the credit rating...
Persistent link: https://www.econbiz.de/10009672312
the European Union (EU) rating market in the regulation imposed on the agencies. Methods/Approach: Selected key figures …-gered stricter regulation of the credit rating agencies. Such regulation has now been in force for a good decade. …
Persistent link: https://www.econbiz.de/10013288138
Few doubt that executive compensation arrangements encouraged the excessive risk taking by banks that led to the recent Financial Crisis. Accordingly, academics and lawmakers have called for the reform of banker pay practices. In this Article, we argue that regulator pay is to blame as well, and...
Persistent link: https://www.econbiz.de/10013121182
We develop a model of rational bubbles based on the assumptions of unknown market liquidity and limited liability of traders. In a bubble, the price of an asset rises dynamically above its steady-state value, justified by rational expectations about future price developments. The larger the...
Persistent link: https://www.econbiz.de/10008738294
Persistent link: https://www.econbiz.de/10012797855
sinnvolle Reform der Regulierung ableiten. Neben den Anreizproblemen, die Gegenstand einer weiteren Arbeit sind (Franke … Eigenkapitalstandards und eine notwendige Risikobegrenzung auf Derivatemärkten. -- Financial Crisis ; Information ; Regulation ; Banking …
Persistent link: https://www.econbiz.de/10003864312
the rating-through-the-cycle approach employed by S&P. The intended regulation of rating agencies thus not only needs to …
Persistent link: https://www.econbiz.de/10003922700
think about information as well as market discipline and discuss policy implications and proposals for regulation. -- Mark …-to-Market ; Fair-Value Accounting ; Credit Rating Agencies ; Financial Crisis ; Regulation ; Financial Institutions ; Banks …
Persistent link: https://www.econbiz.de/10008934782
In the wake of the global financial crisis, the European Parliament and Council Regulation 1060/2009 on Credit Rating … Agencies has recently been published in the Official Journal of the European Union. With this Regulation the European Union … takes a first step in addressing calls for a better regulation of the (global) financial markets including, among other …
Persistent link: https://www.econbiz.de/10013134115
European Parliament and Council Regulation on Credit Rating Agencies. With this proposal the European Union aims at addressing … calls for more regulation of the (global) financial markets and overall improvements in the rating process of Credit Rating … authors offer a first critical comparative examination of the proposed Regulation against the background of the current regime …
Persistent link: https://www.econbiz.de/10013134767