SEC Chief: Need Tighter Oversight Of Rating Firms
Professor Joseph A. Grundfest is quoted in an Associated Press story that appeared in Forbes about the need for closer supervision of credit-rating agencies. Grundfest participated in a roundtable discussion hosted by the Securities and Exchange Commission in Washington D.C. on April 15 that addressed how to improve oversight of the industry. The Associated Press writes:
Joseph Grundfest, a law professor at Stanford University and former SEC commissioner, suggested establishing a rating agency owned and controlled by the investors to make parallel ratings matching those issued by the big Wall Street agencies paid by companies.
That would spark competition and give investors "a seat at the table," Grundfest said. The notion appeared to intrigue Schapiro and the other SEC commissioners.