Committee blames crisis on regulators and ratings
MUCH of the blame for the financial crisis rests with the country's financial regulators and the rating agencies, an Oireachtas committee concluded yesterday.
"The committee is of the view that there were serious shortcomings in the regulation of financial institutions at a national level which contributed significantly to the current economic and financial crisis in Ireland," the report of the Joint Committee on European Scrutiny concluded after listening to weeks of testimony.
The committee called for the report to be debated in the Dail. Future legislation to rectify these problems should not be left to "the closed community of financial networks and experts", it added.
The new report, one of the first independent reports into the crisis, welcomed proposals for new EU regulators to supervise Irish regulators but warned that some EU measures to create three supervisory boards may damage niche businesses in Ireland and could be too bureaucratic.
"Globalisation is a reality but unfortunately this reality is not reflected in our financial regulatory systems," the committee said.
New non-profit rating agencies paid for by the EU should be created, the committee concluded.