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Relatives Are Relative
The scandal with the Greensill Bank brings back earlier scandals by the same rating agency to mind. How close can relationships be without being a problem for the rating and for the rating agency? What degree of kinship could influence the independence of judgment? The story of the fund initiator Interlife Management GmbH seems like […]
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Scope Ratings Game of Corporate Law
The “Scope Group” is a bunch of constant changes under company law. As a result of the Scope Ratings GmbH billion Euro scandal about Greensill Bank in Bermen, which was rated as “investment grade” for the first time in 2019 and is now insolvent, the precise activities of this local rating agency in Berlin have […]
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Rating Technology
Rating technology is the collection of techniques, skills, methods, and processes used in the production of rating services or in the accomplishment of rating objectives. Rating technology comprises the knowledge of techniques, processes, and the like, and can be embedded in computers to allow for operation without detailed knowledge of their workings, for example in […]
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The Dynamics of Free Trade and FDI during the Globalization Era
Multilateralism waned, but the process of trade liberalization continued. This blog article is a short excerpt from Country Risk – The Bane of Foreign Investors (Springer, 2020) by Norbert Gaillard. International trade went through unexpected and paradoxical changes during the globalization era (1991–2016). Multilateralism waned, but the process of trade liberalization continued. For instance, the […]
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Witnesses and Whistle Blowers
Whistleblowers and witnesses could be identified in the following positions:
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Comparing Art on One Platform
In response to the Corona restrictions for museums, art associations and galleries, bpar has established a central platform for specially digital art events with bpar.DIGITAL. It is a project of Beisel Public Art Relations, an initiative of Healthcom GmbH. Museums, art associations, galleries and collections can upload their digital art formats there free of charge. […]
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RAG-Stiftung Must Have Known
Scope Group is not at all related to the transformation of the regions along the Ruhr and Saar Rivers and in Ibbenbüren.
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Why Scope Ratings Never Cares for Profits
The multi-layered shareholder structure allows for an ingenious business model.
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Once Advantages for Scope Shareholders, Now Disadvantages for German Banks
In Germany, the Greensill Bank is likely to be one of the most expensive cases ever.
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TELOS ESG Fund Check Professional Launched
An engine room of ESG fund management is in the making. EccoWorks GmbH, known in Germany for their sustainability consulting, and the long-standing specialist for fund ratings in the institutional sector, TELOS GmbH, have bundled their know-how in the field of sustainability to develop an ESG fund rating product as part of a cooperation. The […]
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Scope Ratings’ Ancillary Services for Greensill Bank
Scope Ratings’ hint to possible additional payments by Greensill Bank to the Berlin rating agency leaves questions unanswered.
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Unique Multi-layered Ownership Structure at Scope Ratings
In a week, the search queries for the Scope scandal have increased significantly.
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Scope Group Not Within the Scope of ESMA
The scandal surrounding Greensill Bank and the credit rating of Scope Ratings GmbH for this bank raises the question of how the situation at the Scope Group got out of control.
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Taxpayers Ultimately Become Victims of Scope Ratings
The Berlin rating agency Scope has top politicians on board who are already drawing high pensions. These politicians now indirectly cost the taxpayer even more.
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Requirements Relating to Press Releases or Reports
The text of publications must meet strict requirements. The European Securities and Markets Authority considers that a credit rating or rating outlook should be accompanied by a press release or report. The press release or report should explain the key elements underlying the credit rating or rating outlook. At least the following elements should be […]
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Monarchs or the Pope Are Not Role Models for China
Many western states do not give China a good role model for further developing the political system. All leading rating agencies – FitchRatings, S&P, DBRS Morningstar – give the People’s Republic of China a credit rating of A+ or A1. Moody’s credit profile of China (issuer rating A1) is supported by the country’s “a1” economic […]
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Internet Oligopoly is Hindering Online Retail Growth
China strengthens small and medium-sized enterprises. On 5 March 2021, the Government of China (rated A1 stable by Moody’s) said it will encourage internet companies to reduce commissions to an appropriate level for merchants that transact on these internet companies’ platforms. “The government did not specify the level of potential commission reduction in its directive,” […]
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Guard the Livinguard
Face masks change the appearance of people, but also of companies. The corona pandemic made many managers really familiar with video conferencing technologies. But it is still unusual when a member of the board of directors of a stock corporation gives its long-awaited lecture in front of around 70 participants from his moving car. He […]
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Secured Income by Securing Deposits
The system of deposit insurance in the private banking industry makes GBB-Rating almost indispensable. Cologne-based GBB-Rating, a company of the Auditing Association of German Banks, offers credit ratings with a price / performance ratio challenging its US peers. It is approved by the European Supervisory Authorities (ESAs) as an External Credit Assessment Institution (ECAI) for […]
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Questionable Top of the Scope Pyramid
More details are becoming known about the recent bank and corporate failures in Germany.
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Moody’s Has More Details About Greensill Bank and its Customers
The Federal Financial Supervisory Authority (BaFin) had issued a ban for Greensill Bank AG on disposals and payments as there is an imminent risk that the bank will become over-indebted. Beyond the bank, the effects must be examined.
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Rating Forest Investments
Understanding the importance of sustainability has popularized an asset class that used to be reserved for the state, churches and nobles. Forest – to be precise its wood – has always served people as fuel, product and building material. Forest has now become the epitome of sustainable investments. The idea of sustainability emerged in a […]
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FFP2 Masks Tested
The rating of the ffp2 masks by Stiftung Warentest needs repair. Stiftung Warentest is a foundation established in 1964 by the German federal parliament with the aim of helping consumers by providing impartial and objective information based on the results of comparative investigations of goods and services. The organization buys products anonymously from retailers, and […]
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Re-Innovate a Social System
In the book with the rather harmless title „Social Credit Rating“, Springer Verlag, Hrsg. Oliver Everling, all financial, societal and political issues of today can be found. Since 2014, the KP (communist party) of PRC (China), is developing a so called, Social Credit System (SCS). The official goal is to include social (good) behavior in […]
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From Money Substitute to Lottery Substitute
The average Bitcoin holding time for investors is estimated 3.1 years. However, as a new Handelskontor infographic shows, there has recently been a change: More and more traders are appearing, while the relative proportion of long-term investors is falling. According to research done by Handelskontor, at the beginning of March there were 5.41 million Bitcoin […]
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Iffy Rating of Claims Against the Auditing Company EY
Due to possible conflicts of interest, the work of rating agencies and that of auditing firms are strictly separated.
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Moratorium at the Bremen CRR credit institution
Bank is closed due to lack of evidence of the existence of receivables in its balance sheet.
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Resistance of the Gallic Village
France and Germany are still a long way from having an efficient social credit system. One of the many prerequisites for a functioning social credit system is the abolition of cash, because only electronic money would allow the state to exercise complete control over all transactions of the citizens. But this control is in turn […]
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First Crypto Fund Ratings in Germany
TELOS GmbH, known for their fund ratings in the institutional sector, and DLC Distributed Ledger Consulting GmbH announce a strategic cooperation in the field of crypto fund ratings. The aim of the cooperation is to connect two worlds – that of classic asset management and that of digital asset management. On the one hand, the […]
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Bank Rating – Normative Banking Regulation in the Financial Market Crisis
Oliver Everling and Karl-Heinz Goedeckemeyer (publisher): Banking Rating – Normative Banking Regulation in the Financial Market Crisis, 2nd Edition, Wiesbaden 2015, Springer Gabler, http://www.springer.com, Copyright Springer Fachmedien Wiesbaden 2004, 2015, ISBN 978- 3-8349-4734-5, DOI 10.1007 / 978-3-8349-4735-2, eBook ISBN 978-3-8349-4735-2, 529 pages. Particularly after the financial market crisis, the serious, sound assessment of the creditworthiness […]
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Israel and UAE lead the field
Without a vaccination and without a face mask, the risks remain incalculable. Israel is leading the race to reach the 60-70 percent threshold needed to suppress the spread of Covid-19 among the general population. Second-placed UAE’s 60.8 doses per 100 inhabitants and the UK’s 30.13 doses per 100 of its citizens are ahead of the […]
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Light Masks for Easier Breathing
Masks are also an issue for psychologists. Who would have thought in 2019 that face masks could one day become an issue for risk managers? The far-reaching consequences give reason to be precisely informed about the use of face masks. The protective effect of the FFP2 mask is only guaranteed if it is worn continuously […]
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The IC Rating™ Model by Intellectual Capital Sweden
Intellectual Capital comprises all factors critical to an organization’s future success that are not shown in the traditional balance sheet. If you are looking for a rating approach to intellectual capital (IC) that fits that definition, this article is still the right read for you: The IC Rating™ model by Intellectual Capital Sweden Kristine Jacobsen, […]
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The Boom of Emerging Sovereign Bond Markets during 1991–2016
A remarkable feature of the globalization era was the enhanced credit position of many emerging economies. This blog article is a short excerpt from Country Risk – The Bane of Foreign Investors (Springer, 2020) by Norbert Gaillard. This development is perhaps best captured by the modest growth of external debt. During 1991–2016, the public and […]
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Countercyclical Capital Buffer in the Election Year
To avoid speculation about the state of banks and the economy in the election year, there are no more capital adjustments. Bank capital should be accumulated when cyclical systemic risk is judged to be increasing, creating buffers that increase the resilience of the banking sector during periods of stress when losses materialise. Since the decision […]
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GRENKE Informs About Fruits of BaFin’s Special Auditor
Based on an ad hoc announcement, Grenke AG called this morning for a media conference that was scheduled at short notice. Due to the severe crisis of the company and the still good ratings, the development is receiving special attention. The questions discussed included possible personnel changes on the Executive Board. The interviewed Antje Leminsky, […]
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Rating Evidence on the Effectiveness of Vaccines
‘CO’ stands for corona, ‘VI’ for virus, and ‘D’ for disease. There is a lot of data circulating about the effectiveness of vaccines against the coronavirus. Even experts can skid when they have to translate the numbers from scientific studies into concrete, understandable information. Explaining the effectiveness numbers and their meaning is not easy. The […]
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In 2020 DEFAMA Once Again Achieved Highs in All Key Figures
DEFAMA promised to publish the audited figures and the 2020 annual report at the end of April 2021. According to preliminary and unaudited figures, Deutsche Fachmarkt AG (DEFAMA) achieved a consolidated net income of € 2.5 (2.1) million or € 2.5 (2.1) million in the 2020 financial year with sales of € 14.8 (previous year: […]
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How to Celebrate Best Asset Manager Ratings
Firstfive AG is Germany’s leading rating agency for assessing asset managers in wealth management. The best asset managers are honored annually. Based on the Sharpe ratio, i.e. the risk-adjusted performance, the results from three risk classes are combined using a score. The best Sharpe ratio receives 33.33 points and is the benchmark for the following […]
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APIs Allow Next Generation Financial Services
Application programming interfaces—or APIs—have already had a fundamental impact on the digital banking industry by creating grounds for an array of new financial products. According to Marius Galdikas, CEO at ConnectPay, APIs can help further improve financial services, as they create the opportunity to ensure coherent multi-channel services and introduce personalized experiences, fostering repeat usage. […]
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Role of the ICM Outreach Support Team at a Rating Agency
Integrated Content Marketing (ICM) at a rating agency is key to ensuring that the rating agency’s brands meet business goals, communicate messages in an engaging way, and accurately assess their performance. An integrated content marketing strategy helps ensure that a rating agency is broadcasting a clear, consistent message across all marketing communication channels by collaborating […]
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TV Episode on the Social Credit System in a German Soap Opera Crime Thriller
The topic of the social credit system is taken up in a humorous crime series on German state television. On Saturday, February 20, 2021, the episode is not only available online, but can also be seen on television at 8:15 p.m. on Second German Television (ZDF). The fictitious story: Georg Wilsberg (Leonard Lansink) is a […]
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Who Used RATING.REPAIR in 2020?
Map of RATING©REPAIR users in 2020 We do not know whether it is mere curiosity, serves scientific research or is of commercial use; in any case, we are repeatedly asked who the users of our service RATING©REPAIR are. We are therefore providing an overview of the user structure in 2020. We only receive this information […]
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When Stocks Are Too Good to Sell – Crossings Can Be Dangerous
Private investor crossings are independent transactions in which an investor enters a buy and a sell order for one and the same security in a timely manner and thus buys the security himself. Such crossings are bogus and prohibited, warns the Austrian Financial Market Authority (FMA). Crossings are a form of market manipulation. Many private […]
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Whistleblowing Is Getting Popular
Whistleblowers, i.e. mostly anonymous tipsters who report irregularities to supervised companies, dubious providers or market practices, have developed into an important source of information for the Austrian Financial Market Authority (FMA). In 2020, 278 reports were submitted via the whistleblower platform on the FMA website, a new record since the system was introduced in 2014, […]
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Morningstar Seeks to Uphold Analytical Independence of Credit Ratings in Response to SEC Complaint
https://newsroom.morningstar.com/newsroom/news-archive/press-release-details/2021/Morningstar-Seeks-to-Uphold-Analytical-Independence-of-Credit-Ratings-in-Response-to-SEC-Complaint/default.aspx
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Concerns About the Impact of COVID-19 on Credit Ratings
The board of the International Organization of Securities Commissions (IOSCO) published the Final Report “Observed Impact of COVID-19 Government Support Measures on Credit Ratings“. IOSCO is the global standard setter for securities markets regulation. The pandemic’s economic and market turmoil led to many credit ratings downgrades and has put credit rating agencies (CRAs) and their […]
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Online Brokerage of Mezzanine Capital for Real Estate Projects
Real estate investments are a bit like finding a life partner. The expectations of capital seekers and investors are often far apart – and the disappointment is great when you have to move on after a hopeful commitment without having achieved anything. Along with the importance of mezzanine capital, there is also a growing desire […]
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With my-si More Sustainability Is In Sight
The investment platform my sustainable impact, my-si, has started in Germany. The my-si investment concept envisages generating attractive returns with sustainable investments and at the same time creating a social benefit. Investors choose ESG-approved fund strategies according to five different risk classes according to their personal risk appetite and make a contribution to a better […]
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Modular Market Reports – New Product From Industrialport
“The current Corona development and the associated lockdowns were a real blessing for industrial real estate in 2020”, writes Peter Salostowitz, Managing Director of Industrialport GmbH & Co. KG and lecturer for PropTech and Entrepreneurship at the Fresenius University, the test winner “Private Business Universities “. “Hardly a week went by in 2020,” says Peter […]
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Rating of Financial Institutions – Properly Assessing Banks and Financial Services Providers
Zafer Diab and Oliver Everling (publisher): Ratings of Financial Institutions – Banks and Financial Services Correctly Assess, Wiesbaden 2016, Springer Gabler, Springer Fachmedien Wiesbaden, http://www.springer.com/, 217 Pages, ISBN 978-3-658- 04194-6, ISBN 978-3-658-04195-3 (eBook). The financial crisis leaves a completely different banking landscape. In a very short time not only former big banks disintegrated, but completely […]
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Moody’s Corporation Reports Results for Fourth Quarter and Full Year 2020 with Bright Outlook for Full Year 2021
https://ir.moodys.com/news-and-financials/press-releases/press-release-details/2021/Moodys-Corporation-Reports-Results-for-Fourth-Quarter-and-Full-Year-2020-Sets-Outlook-for-Full-Year-2021/default.aspx
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New Rating Approaches for Crypto Exchanges and Crypto Custodians
It was not just Tesla’s spectacular entry into the world of bullish cryptocurrencies that attracted the attention of investors to this young asset class. Thousands of crypto currencies are now part of a universe that ranges from outright fraud to serous applications. Keeping an overview here is hardly possible for individual private investors in particular […]
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The Threat of Hacktivists
Cyber risk is event risk, a risk that is growing across all sectors globally. Digitization continues to increase, making software more pervasive throughout an organization, which in turn drives ever more complex software supply chains while attacker capabilities are growing simultaneously. “However,” writes Moody’s in a research document, “the types of cyberattackers remain essentially the […]
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Calculating Aggregate Risk Weight for Private Banks
Calculation of the Aggregate Risk Weight for CRR Credit Institutions Assigned to the Compensation Scheme of German Private Banks The credit institutions under the Capital Requirements Regulation (CRR credit institutions) are obliged to secure their deposits in accordance with the German Deposit Guarantee Act by belonging to a deposit guarantee system. The following relates to […]
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Extended Lockdown Tensions the Spring for a Higher Jump in Sales at Vectron Systems
The listed Vectron Systems AG assumes that when the corona lockdown ends, strong demand for its products can be expected. This is especially against the background that so far only 30 to 40 percent of the target industry, catering, have converted their till systems in accordance with the new legal regulations. This is also indicated […]
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Bank Risk Management: Minimum Requirements, Instruments and Strategies for Banks
Oliver Everling and Samuel S. Theodore (publisher): Bank Risk Management: Minimum Requirements, Instruments and Strategies for Banks, Betriebswirtschaftlicher Verlag Th. Gabler, Wiesbaden, http://www.gabler-verlag.de, hardcover, 1st edition 2008, 595 pages, ISBN 978-3-8349-0512-3. Oliver Everling und Samuel S. Theodore (Herausgeber): Bankrisikomanagement: Mindestanforderungen, Instrumente und Strategien für Banken, Betriebswirtschaftlicher Verlag Dr. Th. Gabler, Wiesbaden, http://www.gabler-verlag.de, gebundene Ausgabe, 1. Auflage 2008, […]
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Federal Finance Minister’s Speculators
Issuers must be concerned about the damage to the image of the German financial center caused by the inadequate supervision of BaFIn by the Federal Ministry of Finance. As part of the federal administration, the Federal Financial Supervisory Authority (BaFin) in Germany is subject to the legal and technical supervision of the Federal Ministry of […]
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What About S&P’s Irannotice?
S&P Global Inc. international business activities must comport with U.S. international trade restraints, including economic sanctions regulations administered by the U.S. Treasury Department’s Office of Foreign Assets Controls. Pursuant to Section 13(r)(3) of the Securities Exchange Act of 1934, S&P Global Inc. (S&P) provides notice to the U.S. Securities and Exchange Commission that disclosure of […]
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Weighing the Score of ‘bbb+’ for the Swedish Banking Market
The Swedish rating agency commits itself to the general outlook for the banking sector in Sweden. Nordic Credit Rating (NCR) applies a score of ‘bbb+’ for the Swedish banking market and expects an economic upswing in 2021 led by external demand for Swedish exports and the eventual rebound in services and tourism during the third […]
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Next Generation Financial Services: Digital transformation and new services
Oliver Everling and Robert Lempka (editors): Next Generation Financial Services: Digital Transformation and New Services, Frankfurt am Main 2020, Frankfurt School Verlag, 480 pages, ISBN (print) 978-3-95647-176-6. The digital transformation of the financial industry is in full swing. On the one hand there are consolidation and cooperation processes between banks and fintechs as well as […]
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Grenke’s Supervisory Board Goes Into Detail
S&P’s Issuer Credit Rating of Grenke AG Rating Type Rating Last Review Date Credit Watch/ Outlook Credit Watch/ Outlook Date Local Currency LT BBB+ 10-Dec-2020 Negative 10-Dec-2020 Local Currency ST A-2 10-Dec-2020 NM 10-Dec-2020 Foreign Currency LT BBB+ 10-Dec-2020 Negative 10-Dec-2020 Foreign Currency ST A-2 10-Dec-2020 NM 10-Dec-2020 “We have heard your call for more […]
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Religious Affiliation and Politics
Religious ties are a major cause of conflict. For example, while the leadership in the People’s Republic of China has hardly any institutional ties to religions, almost all presidents in the USA are religious. This results in conflicts of interest that can have different meanings depending on the religious affiliation. A look at past presidents’ […]
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Equifax Acquires AccountScoreC
Facilitated by the acquisition of AccountScore, Equifax enhances its consumer and commercial product offerings, combining traditional credit bureau information held by Equifax with bank transaction data. Regulatory approval for the acquisition has been received from the United Kingdom’s Financial Conduct Authority (FCA). Integration of these new data assets will enable Equifax clients to benefit from […]
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The Boom of the Chinese Economy, A Key Factor That Upsets Country Risk
The rise of China was certainly the biggest “game changer” of the globalization years. This blog article is a short excerpt from Country Risk – The Bane of Foreign Investors (Springer, 2020) by Norbert Gaillard. The reforms launched by Deng Xiaoping, embodied in the 1979 promulgation of the Joint Venture Law and in the establishment […]
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How Sustainable is Tesla’s Bitcoin Investment?
Tesla holds and may acquire digital assets that may be subject to volatile market prices, impairment and unique risks of loss. “If we hold digital assets and their values decrease relative to our purchase prices, our financial condition may be harmed.” This is the terse statement from the US automotive company on the FORM 10-K […]
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Rating in the Leasing Business
Hans-Michael Heitmüller, Marijan Nemet and Oliver Everling (Publisher): Rating in the Leasing Business: Significance and Requirements Against the Background of Current Market Developments, Fritz Knapp Verlag GmbH, http://www.knapp-verlag.de/, Frankfurt am Main 2010 , 363 pages, ISBN 978-3-8314-0834-4. The rating of leasing companies is becoming increasingly important. Because of the financial crisis, the refinancing of leasing […]
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German Communities Demand Good Social Credit Rating When Buying Land
The allocation guideline for the allocation of community-owned building plots in the development plan area “South of Adolf-Reichwein-Strasse” in the Rodenbach community provides an example of applied social credit rating in Germany. As part of the reallocation process, the municipality of Rodenbach acquires areas to implement the objectives pursued with the land-use planning. The municipal […]
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Reach and Scope of Scope Ratings
Google Trends provides access to a largely unfiltered sample of actual search requests made to Google. It’s anonymized, because no one is personally identified. It is also categorized, i.e. determining the topic for a search query, and aggregated, i.e. grouped together. This way it displays interest in a particular topic from around the globe or […]
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Collection of Contributions by The Institutional Protection Scheme of EdB
A credit institution is an undertaking which conducts at least one of the banking businesses described in detail in section 1 (1) of the German Banking Act (Kreditwesengesetz) commercially or on a scale which requires commercially organised business operations. The banking businesses include the deposit business and credit business, but also specific securities-related activities such […]
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Capital Market Rating
Oliver Everling and Jens Schmidt-Bürgel (editors): Capital Market Rating: Perspectives for Corporate Financing, Betriebswirtschaftlicher Verlag Th. Gabler, Wiesbaden 1st edition December 2005, http://www.gabler-verlag.de, hardcover, 318 pages, ISBN 3-409-14242-8. The financing requirements for companies have changed considerably in recent years. There is a trend from bank-oriented to capital-market-driven financing culture, and corporate bonds are becoming an […]
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Berechtigungsscheine as an Emerging New Asset Class in Germany
Eligibility certificates (Berechtigungsscheine) are short of becoming a new asset class in Germany. Since January 2021, the Federal Government of the Federal Republic of Germany has been distributing authorization certificates intended for the purchase of goods with practically no prior notice. Within a few days, markets were created where the certificates of entitlement are now […]
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German Authority Gives No Mercy to Insider Trading
On January 27, 2021, the Federal Financial Supervisory Authority (BaFin) reported an employee of the securities regulator to the Stuttgart public prosecutor on suspicion of insider trading. The employee had sold structured products with the underlying Wirecard AG on June 17, 2020. On June 18, 2020, Wirecard AG made public that it was not yet […]
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