House Passes Credit-Rating Agency Bill, Major SROs Divided on Bill’s Benefits
July 14, 2006
The House of Representatives this week approved legislation that seeks to increase competition in the securities rating business, although the measure faces uncertain prospects in the Sentate. H.R. 2990, the “Credit Rating Agency Duopoly Relief Act of 2005,” establishes procedures for mandatory registration by a credit rating company with the Securities and Exchange Commission. It also directs the SEC to adopt rules prohibiting anti-competitive practices in the credit rating industry and to stop giving out…