SEC Watchdog Finds Flaws In Rating Agency Audit

Law360, New York (August 31, 2009, 4:58 PM EDT) -- The U.S. Securities and Exchange Commission has moved too slowly to tighten regulation of credit rating agencies, and, as a result, has allowed some questionable agencies and practices to go unchecked, according to a new report from the regulator's inspector general.

The report, made public Thursday by SEC Inspector General H. David Kotz, indicated that in at least one case a credit rating agency received the SEC's Nationally Recognized Statistical Rating Organization certification while an investigation was — and still is — pending into certain aspects...
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