A key House of Representatives committee is set to vote soon on legislation that would overhaul financial regulation and produce greater transparency for investors, but as it’s now written it fails to address many of the credit-rating agency missteps that helped fuel the global financial crisis.
The House Financial Services Committee was scheduled to approve the Accountability and Transparency in Rating Agencies Act on Wednesday, but on Tuesday it postponed the vote for a week. The measure would require greater transparency from the three major bond-rating agencies — Moody’s Investors Service , Standard & Poor’s and Fitch Ratings — about the methods they use in rating bonds.
The legislation is designed to strengthen the bond-rating agencies’ compliance offices, which failed to alert investors that complex securities backed by U.S. mortgages were of poor quality, even though they’d received top investment-grade ratings. Read more…
Do you own a law firm? Would you like to utilize our mortgage auditing services for foreclosure defense cases? Contact MFI-Miami now!
