Investor Suits V. Credit Rating Firms May Be On Way

Law360, New York (May 20, 2009, 12:00 AM EDT) -- Sen. Jack Reed, D-R.I., has introduced a bill that aims to reform the credit rating industry by making agencies more accountable for assigned ratings, in part by allowing investors to take legal action against firms for not taking the proper steps to craft a good rating.

The Rating Accountability and Transparency Enhancement Act of 2009, put forward Tuesday, would give the U.S. Securities and Exchange Commission more power over credit rating agencies, including ensuring that the firms curb potential conflicts of interest and step up internal...
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