Which of the following policy measures required the SEC to prevent issuers of asset-backed securities from choosing the credit-rating agencies that will give them the highest rating and supported earlier initiatives by the SEC?

Question

Quizplus · Accepted Answer

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 includes the provision requiring the SEC to prevent issuers of asset-backed securities from choosing the credit-rating agencies that will give them the highest rating. This policy measure is one of the initiatives by the SEC to address the conflicts of interest among credit-rating agencies that contributed to the financial crisis of 2008. The other options are not relevant or do not include this specific provision.

Which of the Following Policy Measures Required the SEC to Prevent