Rating Agencies Need Competition, Congress Told

Law360, New York (March 7, 2006, 12:00 AM EST) -- Financial industry representatives told the Senate Banking Committee on Tuesday that Congress should increase oversight of credit-rating firms and enact legislation in order to foster greater competition.

The hearings were held against the backdrop of calls for deregulation of the rating industry, dominated by the five rating firms that have been recognized nationwide by the Securities and Exchange Commission. A few of them, Moody’s Investors Service, a subsidiary of Moody’s Corp., and Standard & Poor’s, a unit of McGraw-Hill Co., account for 80% of the credit-rating...
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