Federal regulators have taken a first step toward eliminating the use of credit ratings in rules for banks, under a mandate of the new financial overhaul law.
The board of the Federal Deposit Insurance Corp. voted Tuesday to take public comment on alternatives to relying on credit rating agencies to assess the risk of investments.
The landmark law enacted last month calls for reducing the influence of the three big rating agencies — Moody's Investors Service, Standard & Poor's and Fitch Ratings.
The agencies were discredited in the financial crisis for giving high ratings to risky mortgage securities.
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