Hey, Credit Rating Agencies: Expect More Scrutiny

What's Next In Payments®
4:34 PM EDT June 20th, 2012

Credit rating agencies take note: there’s a new regulator in town, and the SEC has chosen a leader for it.

Thomas Butler was named Director of the Office of Credit Ratings this week, a byproduct of the Dodd-Frank Act that will bring more scrutiny to the methods ratings agencies use for analyzing credit. In particular, the law requires that the Office of Credit Ratings conduct an annual examination of each agency’s practices, and provide an annual report to the public on its findings.

At the outset of his new position, Butler is deciding whether the SEC’s newest arm needs its own rule writing and enforcement staff. The Wall Street Journal’s Jeannette Neumann estimates that roughly 20 employees throughout the SEC are currently assigned to credit rating agency analysis, while the OCR’s budget allows for roughly 30 employees.

Butler is a veteran of several major U.S. financial institutions, including Morgan Stanley Smith Barney, where he spent 14 years.

Comments
Also by This Author
What's Hot
News
Poll Finds Americans Trust Banks Even Less
News
How One Thief Used 12 Credit Cards To Make One Purchase
Loyalty & Rewards
Payment History Firm Pulls In $70 Million Investments
Mobile
Bitcoin Platforms Being Reclassified As Money Transmitters
View All Articles ››
You May Also Like
Company Spotlight
Different mPOS Strokes for Different mPOS Folks
International
Digital River Offers A Sneak Peak At Mobile eCommerce Trends
Mobile Commerce
Trustwave Buys Cenzic To Beef Up App Testing Capability
News
Poll Finds Americans Trust Banks Even Less
News
How One Thief Used 12 Credit Cards To Make One Purchase
B2B Payments
WEX Comes Off Q3 With Strong Results
International
Transforming Payments from Cost Centers to Revenue Drivers
View All Articles ››