Section 702 -- Commission Study and Report Regarding Credit Rating Agencies
In general. The Commission shall conduct
a study of the role and function of credit rating agencies in the operation
of the securities market.
Areas of consideration. The study
required by this subsection shall examine--
the role of credit rating agencies
in the evaluation of issuers of securities;
the importance of that role to investors
and the functioning of the securities markets;
any impediments to the accurate appraisal
by credit rating agencies of the financial resources and risks of
issuers of securities;
any barriers to entry into the business
of acting as a credit rating agency, and any measures needed to remove
any measures which may be required
to improve the dissemination of information concerning such resources
and risks when credit rating agencies announce credit ratings; and
any conflicts of interest in the operation
of credit rating agencies and measures to prevent such conflicts or
ameliorate the consequences of such conflicts.
Report Required. The Commission shall submit
a report on the study required by subsection (a) to the President, the Committee
on Financial Services of the House of Representatives, and the Committee on
Banking, Housing, and Urban Affairs of the Senate not later than 180 days
after the date of enactment of this Act.
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