Congressman Paul E. Kanjorski (D-PA), Chairman of the House Financial Services Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises, today announced that the Subcommittee will hold a hearing to examine the need for more effective regulation of the credit rating agencies to increase transparency, improve accountability, and enhance investor confidence in our financial markets.  

“Many experts believe the decisions of credit rating agencies exacerbated our current financial crisis.  Too often, they issued inaccurate ratings by failing to adequately assess the creditworthiness of certain bonds and debt instruments.  In some cases, they misjudged the performance of an entire industry or an innovative financial product,” said Chairman Kanjorski.  “Not only were investors misled by the agencies’ actions, innocent bystanders ultimately suffered as our markets plummeted.  At the hearing, I will inquire into what degree of oversight of the credit rating agencies is now needed to avoid a repeat of these past mistakes and to ensure that they issue fair and responsible ratings going forward.”
 

Who:               Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises
What:              Subcommittee hearing, “Approaches to Improving Credit Rating Agency Regulation”
When:              May 19, 2009
                        2:00 p.m.
Where:            2128 Rayburn House Office Building

Witnesses will be announced at a later date.

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