PUBLIC LAW 109–291—SEPT. 29, 2006
120 STAT. 1327
Public Law 109–291 109th Congress An Act To improve ratings quality for the protection of investors and in the public interest by fostering accountability, transparency, and competition in the credit rating agency industry.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Credit Rating Agency Reform Act of 2006’’. SEC. 2. FINDINGS.
Upon the basis of facts disclosed by the record and report of the Securities and Exchange Commission made pursuant to section 702 of the Sarbanes-Oxley Act of 2002 (116 Stat. 797), hearings before the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives during the 108th and 109th Congresses, comment letters to the concept releases and proposed rules of the Commission, and facts otherwise disclosed and ascertained, Congress finds that credit rating agencies are of national importance, in that, among other things— (1) their ratings, publications, writings, analyses, and reports are furnished and distributed, and their contracts, subscription agreements, and other arrangements with clients are negotiated and performed, by the use of the mails and other means and instrumentalities of interstate commerce; (2) their ratings, publications, writings, analyses, and reports customarily relate to the purchase and sale of securities traded on securities exchanges and in interstate over-thecounter markets, securities issued by companies engaged in business in interstate commerce, and securities issued by national banks and member banks of the Federal Reserve System; (3) the foregoing transactions occur in such volume as substantially to affect interstate commerce, the securities markets, the national banking system, and the national economy; (4) the oversight of such credit rating agencies serves the compelling interest of investor protection; (5) the 2 largest credit rating agencies serve the vast majority of the market, and additional competition is in the public interest; and (6) the Commission has indicated that it needs statutory authority to oversee the credit rating industry.
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Sept. 29, 2006 [S. 3850]
Credit Rating Agency Reform Act of 2006. 15 USC 78a note.
15 USC 78o–7 note.
APPS06
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