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.
Continue Reading for Free
Register and gain access to:
- Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
- Informative weekly newsletter featuring news, analysis, real-world cas studies, and other critical content
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
*May exclude premium content
Already have an account?
Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
