[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 927 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                 S. 927

 To amend the Securities Exchange Act of 1934 to enhance oversight of 
 nationally recognized statistical rating organizations, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 29, 2009

   Mr. Pryor introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
 To amend the Securities Exchange Act of 1934 to enhance oversight of 
 nationally recognized statistical rating organizations, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Credit Rating Agency Responsibility 
Act of 2009''.

SEC. 2. OVERSIGHT OF NATIONALLY RECOGNIZED STATISTICAL RATING 
              ORGANIZATIONS.

    Section 15E of the Securities and Exchange Act of 1934 (15 U.S.C. 
78o-7) is amended--
            (1) by adding at the end the following:
    ``(f) Oversight of Nationally Recognized Statistical Rating 
Organizations.--
            ``(1) General oversight responsibility.--The Commission 
        shall conduct an annual audit of each nationally recognized 
        statistical rating organization registered under this section 
        (in this section referred to as an `NRSRO').
            ``(2) Audits required.--The Commission shall audit the 
        credit rating procedures and methodologies of each NRSRO to 
        assure that--
                    ``(A) the NRSRO is sufficiently disclosing its 
                rating procedures and methodologies;
                    ``(B) the rating methodologies of the NRSRO are 
                sound; and
                    ``(C) the NRSRO is adhering to its rating 
                procedures and methodologies.
            ``(3) Annual report.--Each NRSRO shall furnish to the 
        Commission an annual report describing--
                    ``(A) its internal reviews of its rating procedures 
                and methodologies;
                    ``(B) how well the NRSRO adheres to its rating 
                procedures and methodologies;
                    ``(C) how the NRSRO manages conflicts of interest 
                and complies with the securities laws;
                    ``(D) a narrative response agreeing or disagreeing 
                with the audit results of the Commission; and
                    ``(E) a signed statement by a duly authorized 
                senior executive officer of the NRSRO certifying the 
                accuracy of all statements, representations, and 
                supporting information provided.''; and
            (2) in the section heading, by inserting ``and oversight'' 
        after ``registration''.
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