Washington, DC – Americans for Financial Reform praises the Senate for passing Sen. Al Franken’s amendment to reduce conflict of interest for credit rating agencies.

Heather Booth, Director, Americans for Financial Reform: “We are pleased the Senate took action on ensuring all the information provided to investors is as accurate as possible. In light of the New York Attorney General’s investigation into whether the big banks provided credit rating agencies with the proper information, the Senate is doing its part to bring truth to ratings. By passing the Franken amendment, we will now put a check on the inherent conflict of interest that occurs when the company looking to sell a rated product, pays the rater.  We are well aware that when the House of Cards built on agencies’ false promises collapsed, millions of Americans lost their savings. We are therefore encouraged that this amendment strengthens Wall Street reform and works to prevent another collapse.”

“Nowhere was the breakdown of our financial system more stark than in the failure of the credit rating agencies to uphold their fundamental mission of assessing creditworthiness,” said Caleb A. Gibson, Federal Affairs Manager atDēmos.  “The Franken amendment will eliminate the banks’ ability to shop for the most favorable rating and promote competition based on accurate, reliable ratings.”