Speaking now @FSCDems Capital Markets Subcommittee hearing on oversight of the #SEC’s offices & divisionshttps://www.youtube.com/watch?v=OVV0zneOIDs …
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Replying to @RepStephenLynch
Since the financial crisis, your agency has not instituted any fundamental change in the credit rating agency business model.
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Replying to @RepStephenLynch
The model that created these conflicts of interest. Credit rating agencies have returned to record profits.
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Replying to @RepStephenLynch
Your most recent examinations found several failures by major credit rating agencies to comply with their own stated policies and procedures
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Replying to @RepStephenLynch
Yet, you have not levied any fines or penalties on ratings agencies.
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Replying to @RepStephenLynch
You have not used your statutory authority under Section 15E of the Securities Exchange Act to suspend agencies or individuals from ratings.
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And Office of Credit Ratings (OCR’s) public examinations do not even identify the specific ratings agencies that violate procedural rules.
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