Bini Smaghi defends ECB policy to dump rating agencies
Lorenzo Bini Smaghi, a member of the executive board at the European Central Bank (ECB), on Thursday criticised rating agencies and said the ECB's decision to accept all types of loans as collateral from Greece was warranted.
"The agencies have recently lost their credibility, contributing, with significant conflicts of interest, to the overvaluation of the creditworthiness of asset-back securities, particularly the subprime mortgages that caused the financial crisis," he said.
Bini Smaghi
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