The group that helped lawmakers write the Credit Rating Agency Reform Act says the law isn't being enforced — and worries that even better enforcement might not be enough to rebuild market confidence in ratings.
Credit rating agencies could be one of the few organizations blamed for the recent credit crisis that will escape the heavy-handed treatment now being threatened by federal regulators.
The most recent report of the President's Working Group, chaired by Treasury Secretary Henry Paulson, obliquely threatened new or stricter regulation for many financial institutions, but side-stepped the question of rating-agency regulation. The report suggested rating agencies may be doing enough on their own by making voluntary fixes to the way they rate structured financial products.
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