Former Head of RBS Calls for Rating Agency Change

April 25, 2012 by · Leave a Comment
Filed under: The Rating Agencies 

The former chairman and CEO of the Royal Bank of Scotland (RBS), Sir George Mathewson, is now the director of a small rating agency. He has called for a fundamental change in the way rating agencies do business.

In an interview with the BBC, he said that ratings must be “as accurate, fair and balanced as possible.” He also said that, “I don’t understand why there is so much emphasis on protecting a status quo which has been clearly see to have failed.”

Sir George came out in support of rotating rating agencies, an idea that has been largely abandoned by European regulators. He believes that using a series of agencies in rotation would lead to a “healthier industry and financial a sector with less risk.”

Speak Your Mind

Tell us what you're thinking...