Credit Rating Agency Bill Signed by President

With enactment of the Credit Rating Agency Bill, the SEC will assume oversight for NRSROs ("Nationally Recognized Statistical Ratings Organizations").  The bill is also touted as breaking the credit rating "duopoly" previously held by Moody's and Standard & Poor's, with new registration procedures opening participation in this industry to over 130 ratings firms.  Incentive to pass this legislation came from "mistakes S&P and Moody's made by telling investors that Enron and WorldCom were safe investments just days before they filed for bankrupty."

Link to U.S. House of Representatives Committee on Financial Services Sept. 29, 2006, Press Release:  http://financialservices.house.gov/News.asp?FormMode=release&ID=876

(ag) Oct. 2, 2006, in Credit Rating Agencies/Congress