Roland Berger Strategy Consultants supports initiative to establish European Rating Agency
Munich/Frankfurt, June 24, 2011
In response to the European Parliament's recent call for a European rating agency, Roland Berger Strategy Consultants confirms it is in preliminary talks with the federal state of Hesse, the association Frankfurt Main Finance and the Frankfurt Stock Exchange Deutsche Börse in order to promote, establish and develop a European rating agency in Frankfurt am Main.
Hesse's Minister-President Volker Bouffier says: "I am delighted that the initiative to establish a European rating agency has been started in the financial center of Frankfurt, and that concrete steps toward realization are about to be taken." Lutz Raettig, Chairman of the Presidential Committee of Frankfurt Main Finance and Chairman of the Council of Frankfurt Stock Exchange, adds: "The complete and true independence of the agency will be crucial and Frankfurt is the place to get started, as it provides the natural proximity to and intensive exchange with the European Central Bank and the European Systemic Risk Board."
Wolf Klinz, Member of the European Parliament and Chairman of the Special Committee on the Financial, Economic and Social Crisis (CRIS), underlines the key role played by conflicts of interest among rating agencies' existing business models in the financial crisis. Furthermore, he calls for the introduction of models "other than issuer pays". According to Markus Krall, Senior Partner and Global Head of Risk Management at Roland Berger Strategy Consultants, "this problem can be solved in close cooperation with market infrastructure providers such as exchanges" He agrees this is "a critical element to reduce conflicts of interest and restore credibility of and confidence in ratings". Roland Berger invites companies and institutions Europe-wide to participate in the discussions and the setup of the initiative."