Sen. Franken Pushing to Reform Credit Rating Agencies

By KBJR News 1

May 17, 2013 Updated May 17, 2013 at 10:03 AM CST

Washington, DC (NNCNOW.com) --- Lawmakers on Capitol Hill, including U-S Senator Al Franken of Minnesota, are working to ensure that the financial meltdown of 2008 never happens again.

Senator Franken is pushing to reform Wall Street credit rating, which he says played a pivotal role in the economic crash five years ago.

Franken says he wants to create an independent board that would assign credit rating agencies to give an initial rating to a structured finance instrument.

The Senator says credit rating agencies knew they were giving inflated ratings to worthless investment packages which ended up leading to an economic downward spiral across the nation.

"Minnesotans lost their homes, lost their life savings, they lost their jobs, they lost their businesses and it was all because these credit rating agencies didn't do their job," says Sen. Franken.

The Senator went on to say that while he has been pushing for this reform, the U-S Securities and Exchange Commission has been dragging its feet in implementing the proposals.

Posted to the web by Krista Burns