Friday, May 14, 2010
Yesterday the Senate, by a 64-35 vote, included a provision in the financial reform package to deal with the conflicts of interest of credit rating agencies. It would create a credit-rating board, under SEC oversight, to act as a middleman between issuers of structured bonds and rating agencies. The board would select which rating agency would provide the initial rating. NYTimes, Senate Amends Financial Overhaul Bill; WSJ, Rating Agencies Face Curbs.