SEC Addresses Credit Crisis & Commerce Talks Jobs Loss
The Securities and Exchange Commission (SEC) announced it has approved a series of measures to increase transparency and accountability at credit-rating agencies, and also ensure that firms provide more meaningful ratings and greater disclosure to investors. Such a move would help ensure lending institutions are only extending credit to qualified individuals and businesses. This increased accountability could work to reassure a shaken financial market and help to get credit flowing again before many businesses are forced to close or face bankruptcy.
From the SEC press release:
“The new measures impose additional requirements on credit rating agencies, whose ratings of residential mortgage-backed securities backed by subprime mortgage loans, and of collateralized debt obligations linked to subprime loans, contributed to the recent turmoil in the credit markets. The SEC also proposed additional measures related to transparency and competition concerning credit rating agencies. The SEC’s actions were informed by the agency’s extensive 10-month examination of three major credit rating agencies that found significant weaknesses in ratings practices.”
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Statement by Secretary Gutierrez on November’s Employment Report
U.S. Secretary of Commerce Carlos M. Gutierrez released the following statement on the November Employment Report, which showed that the unemployment rate is 6.7 percent:
“Today’s employment report reflects the difficulties in our economy. It is devastating when Americans lose their jobs, and many are worried about their future job security. The administration is focused on implementing the financial rescue package to stabilize our financial system and preserve jobs in our country. As the financial sector strengthens, it will become easier for businesses to receive credit that will allow them to meet their payroll needs and create jobs. America has faced tough economic times before and through the strength and perseverance of our workers and the creativity of the American people, our economy will recover.”