The Shadow Financial Regulatory Committee comments on the SEC's proposed rules implementing provisions of the Credit Rating Agency Reform Act of 2006.

The major credit rating agencies have been widely criticized for their role in the international bust and liquidity panic in the markets for structured mortgages and other complex securities. Critics continue to question the effectiveness of rating agency performance, incentives, and oversight. Currently, numerous regulations mandate that investors use credit...

The outlook for the future structure of the credit rating agency sector improved greatly when the House passed the "The Credit Rating Agency Duopoly Relief Act."

In the housing and mortgage bubble of the twenty-first century, the government sponsored credit rating agencies turned out to be a notable weak spot.

End the government-sponsored cartel in credit ratings.

This testimony before Congress suggests ways the SEC could improve the competitiveness of credit rating agencies.

Is SEC regulation always effective?

The Securities and Exchange Commission should revise its certification standards to permit other qualified firms to become nationally recognized statistical rating organizations.