[Congressional Record Volume 163, Number 185 (Monday, November 13, 2017)]
[Extensions of Remarks]
[Page E1557]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                   RISK-BASED CREDIT EXAMINATION ACT

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                               speech of

                  HON. HENRY C. ``HANK'' JOHNSON, JR.

                               of georgia

                    in the house of representatives

                       Tuesday, November 7, 2017

  Mr. JOHNSON of Georgia. Mr. Speaker, I rise in support of H.R. 3911, 
the Risk-Based Credit Examination Act. This legislation amends the 
Securities Exchange Act of 1934 to make the annual reporting 
requirements of the Nationally Recognized Statistical Rating 
Organizations (NRSROs) risk-based.
  The Securities Exchange Act was an innovative piece of legislation 
passed to regulate the secondary trade of securities such as stocks, 
bonds, and debentures. This act led to the creation of the U.S. 
Securities and Exchange Commission (SEC) and is the framework for the 
current federal regulations on financial markets. H.R. 3911 focuses 
specifically on federal requirements of NRSROs or credit rating 
agencies. Currently, the SEC performs annual reviews of NRSROs in eight 
review areas for its annual reports. These reviews disproportionally 
burden smaller NRSROs in the market. H.R. 3911 allows the SEC to 
perform reviews in the eight categories based off of risk-based 
analyses; reducing the burden on smaller credit rating agencies.
  This legislation promotes fairness, encourages small businesses in 
our financial markets and is a simple fix for a burdensome problem. 
H.R. 3911 also helps the SEC allocate its energy more efficiently and 
use its resources more effectively. I support this legislation, and I 
urge my fellow members to support H.R. 3911, the Risk-Based Credit 
Examination Act.

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