A key senator says the Obama administration's financial overhaul should more closely address a conflict of interest in how credit rating agencies are paid.

Michigan Democrat Carl Levin says credit rating agencies gave high ratings to risky investments before the financial crisis in part because they were competing for business from the banks.

Levin says "it's like one of the parties in court paying the judge's salary." He says other parts of the overhaul will improve oversight of the agencies, but not enough.

Levin made the remarks at a hearing of the Permanent Subcommittee on Investigations, which is probing the causes of the financial crisis. Levin is chairman of the panel.