The Financial CHOICE Bill and the Regulation of Credit Rating Agencies: Opening the Gates for the Gatekeeper

Abstract

This article focuses upon the proposed ‘Financial CHOICE Act’ that is currently ascending through the various stages of the American legislative process, particularly in relation to the potential effect upon the regulation of credit rating agencies. The Bill, which recently passed through the Financial Services Committee with a 34-26 vote and will now ascend to the full House of Representatives, aims to ‘create hope and opportunity for investors, consumers, and entrepreneurs by ending bailouts and Too Big To Fail’, amongst a host of other aims. However, criticism has already been pouring in for, what is effectively, the proposed destruction of the Dodd-Frank Act of 2010, which was designed to protect the American people from the iniquities of the marketplace. In this article, the specific focus will be upon the relevant sections of the Bill with regards to credit rating agencies because, as will be shown, the agencies have and will cause systemic havoc if left unchecked – the question to be asked is ‘does the Bill protect the American people, and society moreover, from the venal credit rating agencies?’