U.S Code last checked for updates: Nov 22, 2024
§ 78o–9.
Study and rulemaking on assigned credit ratings
(a)
Definition
(b)
Study
The Commission shall carry out a study of—
(1)
the credit rating process for structured finance products and the conflicts of interest associated with the issuer-pay and the subscriber-pay models;
(2)
the feasibility of establishing a system in which a public or private utility or a self-regulatory organization assigns nationally recognized statistical rating organizations to determine the credit ratings of structured finance products, including—
(A)
an assessment of potential mechanisms for determining fees for the nationally recognized statistical rating organizations;
(B)
appropriate methods for paying fees to the nationally recognized statistical rating organizations;
(C)
the extent to which the creation of such a system would be viewed as the creation of moral hazard by the Federal Government; and
(D)
any constitutional or other issues concerning the establishment of such a system;
(3)
the range of metrics that could be used to determine the accuracy of credit ratings; and
(4)
alternative means for compensating nationally recognized statistical rating organizations that would create incentives for accurate credit ratings.
(c)
Report and recommendation
Not later than 24 months after July 21, 2010, the Commission shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report that contains—
(1)
the findings of the study required under subsection (b); and
(2)
any recommendations for regulatory or statutory changes that the Commission determines should be made to implement the findings of the study required under subsection (b).
(d)
Rulemaking
(1)
Rulemaking
(2)
Rule of construction
(Pub. L. 111–203, title IX, § 939F, July 21, 2010, 124 Stat. 1889.)
cite as: 15 USC 78o-9