More stringent regulations are set to be imposed upon credit ratings agencies as they were criticised in their part played in the run up to the credit crunch. In the months before the sub-prime crisis the rating agencies, namely Standard & Poors, Moody’s and Fitch, all failed to assess the risks attached to banks using complex instruments which they awarded high ratings. Some say the lenders are responsible for their own downfall and should have been aware of the risks of the sub-prime lending if they were going to partake in it. However many argue that the high ratings given by the agencies led to banks having false buoyancy and ultimately created the crisis.

Lucy Trueick