Risk-Based Credit Examination Act

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, I rise in support of my legislation, H.R. 4586, the Risk-Based Credit Examination Act. I thank the chairman and ranking member for their support.

Under Dodd-Frank, the SEC's Office of Credit Ratings, OCR, is required to

conduct annual examinations of credit rating agencies on eight review areas. Evaluating each of these eight areas is resource-intensive for both the OCR and the rating agency and is oftentimes redundant when there have been no identified material issues.

H.R. 4586 is a straightforward bill to provide the OCR with discretion concerning these eight reviewable areas during their annual examinations.

Dodd-Frank's increased compliance requirements for nationally recognized statistical rating organizations, or NRSROs, put small credit rating agencies at a disadvantage in the market, chilled competition among rating agencies, and further consolidated power in the largest rating agencies. Additionally, small credit rating agencies were not the cause of the financial crisis and should not be treated as such.

The marketplace needs commonsense reforms like this. By providing discretion to the SEC's OCR for these eight review areas, H.R. 4586 is right-sizing the SEC's oversight of NRSROs and alleviating costly burdens that especially impact the smaller NRSROs.

By adopting a risk-based approach, H.R. 4586 allows for continued oversight by OCR but in a more efficient and targeted manner. It also removes burdensome and unnecessary compliance costs for small rating agencies to promote much-needed competition in the credit rating industry.

Mr. Speaker, I obviously support H.R. 4586, and I encourage my colleagues to support it.

Mr. Speaker, I yield back the balance of my time.

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 4586) to amend the Securities Exchange Act of 1934 with respect to risk-based examinations of Nationally Recognized Statistical Rating Organizations, as amended.

Mr. Speaker, I ask unanimous consent that all Members have 5 legislative days in which to revise and extend their remarks on this legislation and include extraneous material thereon.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, I support H.R. 4586, sponsored by Mrs. Wagner, to help the Securities and Exchange Commission robustly oversee the credit rating agencies through more prudent annual examinations.

Mrs. Wagner's proposal ensures that the SEC continues its annual examinations of all credit rating agencies but can now focus their examinations on the aspects of the rating agencies that pose the greatest risk to investors in our capital markets.

Mr. Speaker, I urge my colleagues to support this bill, and I reserve the balance of my time.

Mr. Speaker, I am pleased to support H.R. 4586, sponsored by Mrs. Wagner, to help the Securities and Exchange Commission robustly oversee the credit rating agencies through more prudent annual examinations.

Mr. Speaker, I urge my Members to vote ``yes,'' and I yield back the balance of my time.