SEC delays action on credit rating agency rules

November 19, 2008 by · Leave a Comment
Filed under: Policy News 

Not too much of delay but they really need to get these rules in place.  Also I feel that a hard look should be looked at in terms of how the credit rating agencies played a part in this crisis.  If people broke the law, then they should have to answer for their actions.

News:

U.S. securities regulators on Wednesday delayed action on adopting stricter rules to rein in the credit rating agencies until Dec. 3.

The Securities and Exchange Commission had planned on addressing a number of new disclosure rules for the rating agencies at an open meeting on Wednesday but pulled the item at the last minute and rescheduled it for an open meeting in two weeks.

 

“Originally we had planned to spread the consideration of the credit rating agency rules over two meetings since that is the way we proposed them,” SEC Chairman Christopher Cox said at Wednesday’s meeting.

 

“But the commissioners and staff have agreed that the best way to proceed is to do the entire package of rules in one meeting… This rule making remains a high priority for the commission.”

 

That means in two weeks the SEC will address proposals that would require agencies such as Standard & Poor’s, Moody’s Investors Service and Fitch Ratings to differentiate between structured finance products and corporate bonds.

 

Other rules include requiring credit rating agencies to reveal more information about their ratings for complex products such as those linked to to risky mortgages.

Source: Reuters

 

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