SEC Still Pushing For Less Ratings Reliance

Law360, Washington (October 26, 2012, 6:58 PM EDT) -- While U.S. regulators have attempted to stymie investor dependence on rating agencies, Securities and Exchange Commission Chairman Mary Schapiro noted Friday that there were still considerable conflict of interest concerns that might require additional regulation, including selecting agencies to rate specific transactions.

According to Schapiro, who spoke at a George Washington University Law School symposium on the Dodd-Frank Act, there still is a strong bond between who pays for securities ratings and the ratings themselves. That relationship led to thousands of asset-backed securities receiving AAA ratings,...
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