Number: RS22215
Title: Credit Rating Agencies: Current Federal Oversight and Congressional Concerns
Authors: Michael V. Seitzinger, American Law Division 
Abstract: Over the past several years, particularly with the scandals involving such major corporations as Enron and WorldCom, increased attention has been given to the role of credit rating agencies in the operation of the securities markets. Section 702 of the Sarbanes-Oxley Act of 20023 required the Securities and Exchange Commission (SEC or Commission) to "conduct a study of the role and function of credit rating agencies in the operation of the securities market." In January 2003, the SEC issued its report, Report on the Role and Function of Credit Rating Agencies in the Operation of the Securities Markets. In June 2003, the Commission issued a concept release (the 2003 Concept Release) in order to solicit public comments about issues concerning credit rating agencies, including the issue of whether credit rating agencies should continue to be used for regulatory purposes under the federal securities laws and whether, if these ratings are used, there should be a formal process of determining whose ratings should be used and what kind of oversight to apply to these credit rating agencies.
Pages: 6
Date: September 26, 2006