Washington, D.C.—Today, Congressman Joe Donnelly offered an amendment in the House Financial Services Committee to strengthen the oversight of credit rating agencies by making sure that an office created within the Securities Exchange Commission to regulate credit rating agencies is given the necessary staff and broad rulemaking authority needed to perform its duties.
Investors rely on credit rating agencies to provide guidance as to the level of risk of an investment. In the wake of the September 2008 near-collapse of our financial system, many believed that inflated credit ratings largely contributed to the crisis.
“Credit ratings agencies perform an essential function in our financial system," Donnelly said. "That’s why it’s critically important that investors be able to rely on their ratings. A common-sense system of regulation would go a long way toward ensuring these credit rating agencies don’t artificially inflate ratings in pursuit of profits. My amendment will ensure that the people charged with enforcing such a system of regulation have the tools they need to do their jobs effectively.”
The amendment was adopted by voice vote.
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