[Congressional Record Volume 155, Number 189 (Monday, December 14, 2009)]
[Extensions of Remarks]
[Page E2985]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




         WALL STREET REFORM AND CONSUMER PROTECTION ACT OF 2009

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                               speech of

                           HON. BRAD SHERMAN

                             of california

                    in the house of representatives

                      Wednesday, December 9, 2009

       The House in Committee of the Whole House on the State of 
     the Union had under consideration of the bill (H.R. 4173) to 
     provide for financial regulatory reform, to protect consumers 
     and investors, to enhance Federal understanding of insurance 
     issues, to regulate the over-the-counter derivatives markets, 
     and for other purposes:

  Mr. SHERMAN. Madam Chair, I would like to speak about a provision I 
authored that was included in the manager's amendment. The provision 
provides that a Nationally Recognized Statistical Rating Organization 
shall be liable if it is grossly negligent in determining a credit 
rating. My intention in drafting this provision was only to impose 
potential liability on ratings provided pursuant to a contract with the 
issuer of the debt. Nationally Recognized Statistical Rating 
Organizations that provide ratings solely for the purpose of 
journalism, without being paid by the issuer, do not face potential 
liability under this provision.

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