[Congressional Record Volume 151, Number 88 (Tuesday, June 28, 2005)]
[House]
[Page H5255]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




      ANNOUNCING INTRODUCTION OF CREDIT RATING AGENCIES RELIEF ACT

  Mr. FITZPATRICK. Mr. Speaker, every American remembers the financial 
hardships they faced when WorldCom and Enron went belly up. I certainly 
remember the broken investment accounts of my constituents and the 
people of Pennsylvania's 8th Congressional District. And it is 
extremely troubling that little known players in this crisis, Moody's 
and S&P, rated Enron and WorldCom at investment grade just days prior 
to the filing of their bankruptcies.
  Two firms dominate the ratings market with SEC approval and this, Mr. 
Speaker, creates an uncompetitive marketplace, stifles competition from 
other rating agencies, lowers the quality of ratings and allows 
conflicts of interest to go unchecked. It is bad for the market and it 
is hurtful to individual investors.
  Last week, I introduced the Credit Rating Agencies Relief Act of 
2005, H.R. 2990, which will inject greater competition, transparency 
and accountability in the credit rating industry through market-based 
reform. I encourage my colleagues to review and to cosponsor H.R. 2990.

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