Al Franken victory over Chris Dodd re banks and ratings agencies

[Eric J in MN]

===========================================================
WASHINGTON - The Senate has voted to end the ability of financial institutions to choose the credit rating agencies that rate their investment products.

A Senate amendment to a broader financial regulation bill would require an independent board to assign ratings firms to assess the risks of new investments.

Currently, banks issuing investments select and pay ratings agencies for their assessments. Critics argue that relationship created conflicts of interest and that the agencies overrated risky investments that fueled the financial crisis.

The amendment, sponsored by Democratic Sen. Al Franken of Minnesota, passed 64-35 over the objections of Senate Banking Committee chairman Christopher Dodd of Connecticut.

http://www.startribune.com/local/93682379.html
===========================================================

The bill isn't law yet, and could be changed in conference.