'Full-Scale' Bailouts for Italy, Spain Coming: Egan-Jones

By Colin Lokey:You have to love 'underdog' ratings agency Egan-Jones. While the DBRSs of the world are busy keeping Spain's banks afloat by making sure their collateral stays eligible, Egan-Jones spends its time issuing ratings that actually mean something.

In a common sense move, Egan-Jones cuts Austrian, Dutch sovereign ratings. Credit rating agency Egan-Jones lowered Austria's rating to A from A-plus and cut the rating on the Netherlands to A from AA-minus. Both ratings have a negative watch. Northern European countries will absorb the cost of shoring up ailing neighbors, Egan-Jones said in separate statements on each rating action.

Last night's election in Italy is resulting in remarkable market gyrations all around the world.

Discord Emerges It's not just Germany expressing reservations about the ECB's plan to "Save the Euro". Spain, Italy, and Germany all have concerns about the plan launched last week by ECB president Mario Draghi.

The US Securities and Exchange Commission has charged credit ratings firm Egan-Jones, and its owner and president Sean Egan, with providing misleading information to the market regulator.The SEC announced the charges against the Haverford, Pennsylvania-based firm late Tuesday, accusing Egan-Jones Rating (EJR) Company of providing "material representations and omissions" in its 2008 application to register as a nationally recognized rating organization for certain securities.