[Text only of letters sent from the Commerce Committee Democrats]
The Honorable Arthur Levitt, Jr.
Chairman
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
Dear Chairman Levitt:
I am writing with reference to my prior correspondence with the Commission concerning your oversight of rating agencies and the need for reforms. In your April 29, 1996 response, you promised to keep me informed of the status of your efforts in this area.
Recent press reports, "SEC Drafting Proposed Rules To Pick Firms As NRSROs," Bond Buyer, Tuesday, September 9, 1997, indicate that Commission staff is drafting proposed rule changes that would set up a formalized regulatory process for qualifying rating agencies as nationally recognized statistical rating organizations for purposes of the federal securities laws, rules and regulations. The Commission's use of ratings has grown in recent years and become an integral part of the federal regulatory scheme. Uniform federal standards are long overdue and increasingly necessary to maintain the protection of investors.
Please keep me informed of your progress. I look forward to reviewing and hopefully supporting your proposals when you put them out for public comment. Please also advise me by the close of business on Friday, October 10, 1997 of the outcome of the Justice Department's investigation of Moody's, and give me an indication of the responses you received to the six questions you put out for public comment in your 1994 concept release, as well as any general conclusions you have drawn on the basis of those responses and the Commission's experience.
Thank you for your cooperation and attention to this request.
Sincerely,
JOHN D. DINGELL
RANKING MEMBER
Enclosure
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