Credit-rating companies would have to release more information on how they assess debt securities, ensure the quality of ratings and prevent conflicts of interest under rules proposed by the U.S. Securities and Exchange Commission.
SEC commissioners voted 5-0 to seek comment for 60 days on a 517-page set of regulations, part of the Dodd-Frank Act's attempt to reshape the role of the credit raters after they were blamed by lawmakers for fueling the housing bubble by handing out top grades on bonds tied to risky mortgages.
"Today's proposals are part of a concerted effort by the SEC to enhance the credit-rating industry in light of the financial crisis," SEC Chairman Mary Schapiro said in prepared remarks before commissioners voted in Washington.
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