Correcting the Credit Rating Agency Problem

Kevin Hall continues his reports on the credit rating agencies with an analysis of the Accountability and Transparency in Rating Agencies Act, which is being proposed for approval by the House Financial Services Committee. This analysis is not as deep as Hall's previous work. He cites three deficiencies with the p

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roposed legislation:

• there is no independent due diligence with regard to a proposed offering
• the position of compliance officer needs to be strengthened considerably
• the SEC should work with the compliance officer.

My question is - does the legislation ensure that the agencies do their job or does it enable them to continue their pursuit of money?