Has the SEC Negated the Threat of a US Credit Rating Down Grade ?

The Securties & Exchange on Tuesday Made Regulatory Changes to many Financial Regulations that "Required" a Credit Rating from One or More Credit Rating Agencies.

From Dealbook.NYTimes.com,07/26/11,by Ben Protess.

Let's face it, the credit ratings agencies missed the housing bubble. I don't think there is any debate there. The SEC has been trying to circumvent regulatory requirements that make these firms relevant to US financial operations. ..."On Tuesday, the Securities and Exchange Commission unanimously approved a plan to erase references to credit ratings from certain rulebooks. The agency also adopted a substitute to the ratings, the first of several such changes the commission must enact in the coming months..."

Enter Dodd-Frank, you remember designed to crack down on the financial industry, or not. The SEC MUST come up with their own credit rating system and not depend on Credit Rating Agencies for Debt offering ratings. ..."“I believe the rules will provide an appropriate and workable alternative to credit ratings,” , the agency’s chairwoman, said in a statement"... And this from Mr. Protess;..."The rule drew strong bipartisan support from the agency’s commissioners."... I bet it did more than that.

Well, there you have it folks, disaster adverted. All is well. We can shoot for a world record "can kick" by congress on the Debt Ceiling Debate.

I just wonder 2 things; did anyone bother to tell congress & the President about this so they can quit scaring the crap out of folks and does the SEC have the stones to reign in the TBTF's when it comes to debt issues.

We'll see. More on this later.....

BOY!! WAS I WRONG ON THIS ONE!!! 8/8/11