"The securitised subprime mortgage market would not have grown to the extent that it did without the favourable ratings given by some agencies."
According to the FT, banks first warned about a potential crisis in subprime home loans -- high-risk loans to people with poor credit histories -- last year, but credit agencies Standard and Poor's and Moody's only downgraded ratings on relevant securities earlier this year.
Traders remain highly sensitive to evidence that losses from US subprime home loans are affecting banks or investment funds around the world.
The FT said that EU Internal Market Commissioner Charlie McCreevy met with senior S&P executives last month and expressed his concern over the subprime mortgage market. He has reportedly invited securities regulators from across Europe to a meeting next month to discuss rating agencies a