Cox explained that Congress addressed some of the problems cited in the report when it regulated credit rating agencies in September 2007, mandating the companies to register as nationally recognized statistical rating organizations (NRSROs). That subjected the agencies to certain disclosure and policy rules. Further, a set of proposed rules issued in June by the SEC, and currently out for public comment, address many of the remaining issues noted in the report.
For example, one proposed rule would prohibit agencies from issuing a rating on a structured product, unless information on the characteristics of the assets underlying the product was available to other credit rating agencies. This would allow other agencies to rate the product and potentially expose ratings that were influenced by the product's sponsor. Another proposed rule would prohibit anyone participating in discussions about ratings fees to rate a product, while another potential rule would ban analysts from taking gifts amounting to more than $25 from issuers.
The SEC said that it has made several recommendations for remedial action, and that all three agencies have agreed to put the SEC's recommendations into action.
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