{"id":188566,"date":"2010-09-01T20:54:00","date_gmt":"2010-09-02T01:54:00","guid":{"rendered":"https:\/\/www.panix.com\/~msaroff\/40years\/2010\/09\/01\/one-benefit-of-dodd-frank\/"},"modified":"2010-09-01T20:54:00","modified_gmt":"2010-09-02T01:54:00","slug":"one-benefit-of-dodd-frank","status":"publish","type":"post","link":"https:\/\/www.panix.com\/~msaroff\/40years\/2010\/09\/01\/one-benefit-of-dodd-frank\/","title":{"rendered":"One Benefit of Dodd-Frank"},"content":{"rendered":"<p>It expands the jurisdiction of the SEC with regard to the malfeasance and misfeasance of the ratings agencies by <a href=\"http:\/\/www.businessweek.com\/news\/2010-09-01\/sec-says-dodd-frank-law-lets-agency-chase-overseas-ratings-fraud.html\">allowing them to take actions that occurred in other countries<\/a>:<\/p>\n<blockquote style=\"color: rgb(0, 0, 153);\"><p>The U.S. Securities and Exchange Commission said it plans to use new financial laws to pursue credit-rating fraud initiated overseas after dropping a case against Moody\u2019s Corp. amid uncertainty over its authority.<\/p>\n<p>The SEC\u2019s investigation found that a Moody\u2019s ratings committee based in Europe refused to lower inflated grades on almost $1 billion of debt in 2007, the agency said in a report released yesterday. The committee declined to correct errors produced by a flawed ratings model out of concern for the firm\u2019s reputation, the SEC report said.<\/p>\n<p>\u201cUncertainty regarding a jurisdictional nexus between the U.S. and the relevant ratings conduct\u201d led the SEC to drop the probe, the agency said in the report. That uncertainty was removed by the Dodd-Frank law, enacted in July, which clarifies the SEC\u2019s power to sue for misconduct that has a substantial effect within the U.S., the report said.<\/p><\/blockquote>\n<p>Of course, a better alternative would be to change the laws that require the ratings agencies in the first place, as they have been a complete failure.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>It expands the jurisdiction of the SEC with regard to the malfeasance and misfeasance of the ratings agencies by allowing them to take actions that occurred in other countries: The U.S. Securities and Exchange Commission said it plans to use new financial laws to pursue credit-rating fraud initiated overseas after dropping a case against Moody\u2019s &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[998,1004,1020,985],"tags":[],"class_list":["post-188566","post","type-post","status-publish","format-standard","hentry","category-congress","category-finance","category-legislation","category-regulation"],"_links":{"self":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/188566"}],"collection":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/comments?post=188566"}],"version-history":[{"count":0,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/188566\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/media?parent=188566"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/categories?post=188566"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/tags?post=188566"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}