Page:United States Statutes at Large Volume 124.djvu/1913

 124 STAT. 1887 PUBLIC LAW 111–203—JULY 21, 2010 Urban Affairs on September 22, 1988, as enacted into law by section 555 of Public Law 100–461, (22 U.S.C. 286hh(a)(6)), is amended by striking ‘‘credit rating’’ and inserting ‘‘credit-worthi- ness’’. (g) EFFECTIVE DATE.—The amendments made by this section shall take effect 2 years after the date of enactment of this Act. (h) STUDY AND REPORT.— (1) IN GENERAL.—Commission shall undertake a study on the feasability and desirability of— (A) standardizing credit ratings terminology, so that all credit rating agencies issue credit ratings using identical terms; (B) standardizing the market stress conditions under which ratings are evaluated; (C) requiring a quantitative correspondence between credit ratings and a range of default probabilities and loss expectations under standardized conditions of economic stress; and (D) standardizing credit rating terminology across asset classes, so that named ratings correspond to a standard range of default probabilities and expected losses independent of asset class and issuing entity. (2) REPORT.—Not later than 1 year after the date of enact- ment of this Act, the Commission shall submit to Congress a report containing the findings of the study under paragraph (1) and the recommendations, if any, of the Commission with respect to the study. SEC. 939A. REVIEW OF RELIANCE ON RATINGS. (a) AGENCY REVIEW.—Not later than 1 year after the date of the enactment of this subtitle, each Federal agency shall, to the extent applicable, review— (1) any regulation issued by such agency that requires the use of an assessment of the credit-worthiness of a security or money market instrument; and (2) any references to or requirements in such regulations regarding credit ratings. (b) MODIFICATIONS REQUIRED.—Each such agency shall modify any such regulations identified by the review conducted under subsection (a) to remove any reference to or requirement of reliance on credit ratings and to substitute in such regulations such standard of credit-worthiness as each respective agency shall determine as appropriate for such regulations. In making such determination, such agencies shall seek to establish, to the extent feasible, uniform standards of credit-worthiness for use by each such agency, taking into account the entities regulated by each such agency and the purposes for which such entities would rely on such standards of credit-worthiness. (c) REPORT.—Upon conclusion of the review required under subsection (a), each Federal agency shall transmit a report to Con- gress containing a description of any modification of any regulation such agency made pursuant to subsection (b). SEC. 939B. ELIMINATION OF EXEMPTION FROM FAIR DISCLOSURE RULE. Not later than 90 days after the date of enactment of this subtitle, the Securities Exchange Commission shall revise Regula- tion FD (17 C.F .R. 243.100) to remove from such regulation the Deadline. 15 USC 78m note. Standards. Deadline. Regulations. 15 USC 78o–7 note. 12 USC 24a note.