Press Releases

Bachus Amendment To Promote Greater Investor Due Diligence Is Approved By Committee

WASHINGTON, October 27, 2009 -

- The Financial Services Committee approved an amendment by Ranking Member Spencer Bachus to H.R. 3890, the Accountability and Transparency in Rating Agencies Act, that will help restore market discipline and promote greater investor due diligence. 

The amendment, which is part of the Republican regulatory reform plan (H.R. 3310) that was introduced by Representative Bachus last July, discourages the blind reliance on ratings supplied by the major credit rating agencies that has had such disastrous consequences for investors and the economy as a whole. 

The amendment will change the term "Nationally Recognized Statistical Rating Organization" to "Nationally Registered Statistical Rating Organization."  The term Nationally Recognized Statistical Rating Organization has given investors the impression that the SEC is still in charge of designating credit rating agencies  and that the credit analysis provided by the agencies is worthy of investor reliance because it has been sanctioned by the Federal government.


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