Europe has agreed a plan to supervise credit rating agencies

European states have agreed a deal to introduce mandatory registration and supervision of credit rating agencies, reported Reuters.

Rating agencies have been criticised for failing to spot the risks in subprime related securities.

‘The E.U. ambassadors reached a preliminary deal on a measure to regulate credit rating agencies,’ a spokesman for the European Commission told Reuters.

The measure still requires approval from the European Parliament and EU finance ministers, said Reuters.

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