Continuing its slog through the amendment process, the Senate on Thursday approved a measure requiring the Securities and Exchange Commission (SEC) to create a regulatory board in charge of selecting rating agencies for newly issued asset-backed securities.
The amendment, introduced by Sen. Al Franken, D-Minn., passed by a 64-35 vote. According to Franken, the goal of the amendment is to eliminate conflicts of interest in the bond-rating process. The regulatory board would consist of investors, issuer and rating agency representatives, as well as at least one independent member.
SOURCE: U.S. Senate