beSpacific: Federal Reserve: Report to the Congress on Credit Ratings

Federal Reserve: Report to the Congress on Credit Ratings

Report to the Congress on Credit Ratings, July 2011

  • “Section 939A of the Dodd-FrankWall Street Reform and Consumer Protection Act (the act) requires each federal agency to review its regulations and identify (1) any regulation that requires the use of an assessment of the creditworthiness of a security or moneymarket instrument and (2) any references to or requirements in such regulations regarding credit ratings. each agency must carry out the review no later than one year after the date of the enactment of theact. the act further requires each federal agency to transmit a report to Congress upon the conclusion of the review. Finally, section 939A directs each federal agency to modify the regulations identified in the review by removing all references to or requirements of reliance on credit ratings and substituting alternative standards of creditworthiness. In establishing such alternative standards, an agency must, to the extent feasible, establish uniform standards, taking into account the entities it regulates and the purposes for which such entities would rely on the alternative standards of creditworthiness.”

    beSpacific: Federal Reserve: Report to the Congress on Credit Ratings


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