Sounds like Senator Al Franken (D. MN) and SEC Chairman Mary Jo White are off to a rocky start:
http://blogs.marketwatch.com/...
On the Senate floor Monday, the Democrat from Minnesota raised concerns about the agency’s inaction on a measure he co-authored seeking to eliminate credit rater conflicts. Agencies issuing ratings came under stinging criticism for giving their highest marks, such as the coveted AAA, to mortgage securities packaged from subprime loans. Mary Jo White was unanimously confirmed to be SEC chair by the Senate Monday afternoon.
“Resolving the problem of the conflict of interest in the rating industry will be a vital test of the SEC under Ms. White’s chairmanship,” said Franken. “In a meeting that we had together last month, Ms. White expressed her appreciation of the importance of this issue and her commitment to scrutinize the conflicts of interest apparent in the credit rating industry.”
A provision in Dodd-Frank introduced by Franken required the SEC to write a study and make a recommendation about whether the commission should randomly assign agencies to rate structured finance products.
The goal is to separate the payment of the rating from the selection of the rater, eliminating a practice known as “ratings shopping” where an investment bank hired by a corporation privately solicits preliminary ratings from multiple agencies for a securitized product and then only pays for and discloses the most favorable rating received. - Market Watch, 4/8/13
White assured Franken that she would look at the program:
http://www.washingtonpost.com/...
While angst about White’s relationship with Wall Street created an immediate stir after President Obama nominated her, the buzz Monday focused on her regulatory agenda. Within hours of her confirmation, lawmakers were already pressing her to get moving on issues that top their wish lists.
On the Senate floor, Sen. Al Franken (D-Minn.) said White had promised him that if confirmed she would consider reforming the credit rating agency industry, which contributed to the financial crisis.
“Ms. White has assured me that she will give this critical issue the attention it deserves,” Franken said in a statement. “. . . I do intend to hold her to that commitment.” - Washington Post, 4/8/13
Franken has long been an advocate for tighter oversight for credit rating agencies:
http://dealbook.nytimes.com/...
Critics like Mr. Franken argue that the rating agencies’ business model is innately compromised. Banks and corporations that issue debt pay the rating agencies to assign their bonds a letter grade. In the lead up to the financial crisis, the critics say, the rating agencies sacrificed the integrity of their ratings to increase their bottom lines.
At the time, the rating agencies blessed many subprime mortgage bonds with the highly coveted triple-A rating. When the investments soured, it set off a chain reaction that nearly toppled the economy.
When Congress was debating Dodd-Frank, some lawmakers floated the idea of scrapping the so-called issuer-pays model altogether. Mr. Franken proposed creating an independent body, perhaps a public utility or self-regulatory organization, that would randomly assign ratings to different agencies.
“This is not a progressive or conservative idea — it’s a common-sense idea,” Mr. Franken said on a conference call with reporters, hosted by Americans for Financial Reform, a consumer advocacy group. “Instead of pay-to-play, we’d switch to pay-for-performance.”
But during the final days of negotiations over Dodd-Frank, amid fierce lobbying by the rating agencies, lawmakers abandoned the plan. Instead, they reached a compromise, requiring the Securities and Exchange Commission to study the feasibility of using an independent body to assign ratings.
Mr. Franken vowed to “hold the S.E.C.’s feet to the fire” when the study is released. - New York Times, 9/1/11
I hope White will deliver on her promise to Franken because I don't doubt that he is going to be all over her on this issue. On a lighter note, Senator Franken will be hosting the 3rd Annual Minnesota Congressional Delegation Hotdish Competition:
http://livewire.talkingpointsmemo.com/...
On Tuesday, Sen. Al Franken (D-MN) will host the third annual edition of an odd D.C.-by-way-of-Minnesota tradition: the "Minnesota Congressional Delegation Hotdish Competition." First proposed by Franken in 2011, the competition involves all of the members of the Minnesota congressional delegation cooking a "hotdish," which is a variety of baked casserole popular in North Dakota and Minnesota. The press release announcing this year's event describes it as a "friendly competition as a way to bring the delegation together to put partisanship aside and celebrate a Minnesota culinary tradition."
Last year, the hotdish competition ended in a tie between Franken and former Republican Rep. Chip Cravaack.
"I’m very excited about hosting another Hotdish Off tomorrow,” Franken said in a statement. “I’m looking forward to defending my title as the Minnesota delegation's hotdish champion and spending some quality time with the other members of the Minnesota delegation." - TPM, 4/9/13
Best of luck to you, Senator Franken. If you would like to donate to Al's re-election campaign, you can do so here:
https://secure.actblue.com/...