SEC toughens rules for credit rating agencies

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WASHINGTON, DC - The US Securities and Exchange Commission (SEC) has adopted tough new rules for credit rating agencies. The new regulations are designed to enhance disclosure, and to abolish the perceived conflicts of interest that many say led to the subprime crisis and resultant credit crunch.

The SEC voted unanimously to adopt the new rules on Wednesday, December 3. They will prohibit ratings analysts from rating their own work and ban them from affecting the price of ratings - a practice tha