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Headlines but No Clear Plan for Bond Rating Agencies at House Subcommittee Hearing
7/26/2021 · by CRE Finance Council · CMBS Structural Issues · Legislation and Regulation
A House Financial Services Subcommittee held a hearing last week to examine the Nationally Recognized Statistical Rating Organizations (NRSROs). The hearing reflected a longstanding interest in bond rating agencies by Democrats in Congress. Subcommittee Chairman Brad Sherman (D-CA) has long argued the issuer-pay business model creates a conflict of interest and incentivizes “credit rating shopping.” Committee Chairwoman Maxine Waters (D-CA) said at the hearing, “With the financial risks that climate change and the pandemic now pose, investors need objective and reliable ratings more than ever.”
Tags: capital markets · rating agencies ·