How excited are you by the prospect that the Treasury might regulate credit ratings? Us either. And, as it happens, even the Treasury isn't so keen on the idea. To wit:
The Obama administration is resisting calls to get involved with ensuring that credit ratings are reliable and said on Wednesday this would force investors to rely even more on the ratings.
Although credit rating agencies have been accused of assigning top ratings to complex securities that later crumbled in value, the government should not be in the business of regulating their methodologies or ratings performance, a top Treasury official told Congress.
"To do so would put the government in the position of validating private sector actors and would likely exacerbate over-reliance on ratings," the Treasury's assistant secretary for financial institutions Michael Barr said.
Government validating private sector actors? I'm sure you know that the Treasury would never contemplate such a thing.
Treasury Resisting Calls to Regulate Credit Ratings [CNBC]