Overreliance on ratings agencies "is a cause of herding and cliff effects. that can amplify...

|By:, SA News Editor

Overreliance on ratings agencies "is a cause of herding and cliff effects... that can amplify procyclicality and cause systemic disruption," says the FSB, asking countries to cut raters' roles in the financial system. G-20 leaders are expected to address the issue next month, with potentially damaging consequences for Moody's (MCO), S&P (MHP) and Fitch.