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Wagner and Foster Introduce Bill to Strengthen Credit Rating Company Oversight

Mar 6, 2020
Press Release

Washington, D.C. — Congresswoman Ann Wagner (R-MO) and Congressman Bill Foster (D-IL) released the following statement after they introduced the Risk-Based Credit Examination Act.  The legislation would permit the SEC to focus on areas of greater risk when conducting annual examinations of credit rating companies:

Congresswoman Ann Wagner: “Consumers know that government regulations work best when they are correctly targeted, limited in scope, are transparent, and ensure strong protections for the people they are designed to protect.  Unfortunately the Dodd-Frank law had unintended consequences which centralized market share in just a few large companies, while smaller firms were driven out of the marketplace.  Reducing onerous, one-size fits all reporting requirements will bring more competition into the marketplace, which is why I am proud to introduce bipartisan legislation that reduces those unnecessary burdens and levels the playing field in this industry.  Regulation is not always the answer, and this legislation will allow credit rating organizations to be more responsive to consumers while maintaining the accountability and oversight Americans expect and deserve.”

Congressman Bill Foster: “Ensuring that the SEC can allocate its limited resources effectively is important to its mission of protecting investors, and I am pleased to partner with Rep. Wagner on a commonsense bill that will allow the Commission to focus on the aspects of bond rating agency compliance that pose the greatest risk to investors and the integrity of our capital markets.”