European Commission Saw Problems in 2006, Others say 2005

The European Commission will look into credit agencies’ apparent slow response to the subprime mortgage crisis, saying the issue will be addressed in the Committee of European Security Regulators second annual report. Many of us knew there was a problem in 2005, suggesting U.S. bankruptcy law changes were a sign of lenders protecting themselves. Here is what the European Commission said about 2006:

‘In regard to concerns that we have about their apparent slowness in responding to material market evidence of deterioration since mid-2006… we have asked the Committee of European security regulators to look at this issue in their second annual report, which we expect in April 2008’, a spokeswoman for the commission said.