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Moody's and other major agencies are designated as nationally recognized statistical ratings organizations.
Mr. Macey of Yale Law School, who advocates rewriting the rules that now require nationally recognized statistical ratings organizations to bless countless deals, says that the ratings system as it currently stands encourages bubbles.
The Securities and Exchange Commission already approves nationally recognized statistical ratings organizations and is contemplating tightening oversight and regulation further — maybe even making the likes of Moody's, Standard & Poor's and Fitch Ratings financially liable for rating errors.
The S.E.C.'s case against Mr. Egan and his firm concerns a filing made in 2008 seeking special designation to be a "nationally recognized statistical ratings organization".
Together these ratings agencies, among others, are called Nationally Recognized Statistical Ratings Organizations, meaning that they are registered with the Securities and Exchange Commission.
The three leading agencies have an oligopoly, thanks to the Securities & Exchange Commission's granting them the grandiose title of Nationally Recognized Statistical Ratings Organization, obviously a huge marketing tool.
Similar(51)
Notwithstanding any other provision of this section, or any other provision of law, neither the Commission nor any State (or political subdivision thereof) may regulate the substance of credit ratings or the procedures and methodologies by which any nationally recognized statistical rating organization determines credit ratings.
The first ratings agencies, or statistical rating organizations (SROs), were formed more than 100 years ago to provide an objective, credible source of information on the risks of bonds issued by railroads and other U.S. companies.
A portion of the independent directors shall include users of ratings from a nationally recognized statistical rating organization.
at least 1 member of the committee is a user of ratings from a nationally recognized statistical rating organization.
The Commission shall issue rules to prevent the sales and marketing considerations of a nationally recognized statistical rating organization from influencing the production of ratings by the nationally recognized statistical rating organization.
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CEO of Professional Science Editing for Scientists @ prosciediting.com