Congress Missed Opportunity to Fix Conflict of Interest Problem at Credit Ratings Agencies

Statement

Sen. Chuck Grassley of Iowa today made the following comment on a New York Times report that the Justice Department "is investigating whether the nation's largest credit ratings agency, Standard & Poor's, improperly rated dozens of mortgage securities in the years leading up to the financial crisis." Grassley was a co-sponsor of an amendment during the financial reform legislative debate last year to try to fix a conflict of interest problem at the credit agencies. He made the following comment on today's news report.

"The Senate tried to do something about a conflict of interest problem at the credit ratings agencies. Unfortunately, the House-Senate conference committee downgraded the Senate provision to a study. It was a missed opportunity. Maybe a Justice Department investigation will force action on the conflicts of interest problem and accomplish what should have been done a long time ago."

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