Congress Passes Credit Rating Agency Reform That Strives to Boost Market Competition
September 29, 2006
The House of Representatives this week approved legislation designed to boost competition in the credit rating business, sending the measure to the White House to be signed into law. Whether the new law yields any significant change in the business of rating mortgage- and asset-backed securities – a field that is heavily dominated by a few firmly entrenched companies – remains to be seen. Standard & Poor’s, Moody’s Investors Service and Fitch Ratings over the years have dominated the...