Congress required federal agencies to cut reliance on credit ratings in banking regulations. Regulators responded with a plan that would use classifications by the Organization for Economic Cooperation and Development. Those rankings assign zero risk to the government debt of Greece, Portugal and other financially troubled European nations. "The regulators are interpreting Dodd-Frank too narrowly on this ratings issue," says Kenneth Bentsen, executive vice president of SIFMA. "The law instructs them to reduce the role of ratings in regulation, not eliminate it."
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