SEC Issues Regs for Credit Raters

New rules stemming from Dodd-Frank require agencies to release more information

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.

Copyright 2016 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Comments

Advertisement. Closing in 15 seconds.