Senate Panel OKs Credit-Rating Agency Bill

Law360, New York (August 2, 2006, 12:00 AM EDT) -- The Senate Banking Committee approved a bill Wednesday that aims to boost competition and oversight of credit-rating firms.

The Credit-Rating Agency Reform Act will allow the U.S. Securities and Exchange Commission to crack the whip on credit-rating firms. The SEC will also have the authority to tackle any conflicts of interest and any abusive or anti-competitive practices.

The bill also outlines requirements for agencies that are looking to be “nationally recognized” rating firms, such as having a glowing three-year record. The SEC will be able to...
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