Thursday, May 06, 2010

Finance bills wouldn't fully fix credit-rating agencies

McClatchy reports:
Although credit-rating agencies played a crucial role in creating the nation's severe financial crisis, the legislation to revamp financial regulation that Congress is considering would give them a dangerous pass.

Neither the Senate Banking Committee bill that's being debated now nor the version that the House of Representatives passed last year would require credit-rating agencies to do any due diligence when they rate complex financial instruments.