In our judgment, the credit rating agencies shouldn't be able to opt out of having high standards and a level playing field.

What I believe we have to do is to give legislative support to the SEC's efforts to focus on transparency through enhanced disclosure, and also to counteract the appearance or substance of conflict of interest.

Credit rating agencies are in the business of providing investors with unbiased analysis, but the current incentive structure gives them too much leeway to hand out unjustifiably favorable ratings.

I particularly want to commend Senator Shelby because it was his leadership really in 2006 that first gave the SEC the clear authority to begin to regulate the credit rating agencies.

Senator Reed's bill struck a very sensible compromise in my judgment.

I think this was something that we should pursue.

The purpose of the RATE Act is to strengthen the Securities and Exchange Commission's (SEC) oversight of credit rating agencies and improve the accountability and accuracy of credit ratings.

I think it is important, because we specifically point out that their ratings would not be considered a forward-looking statement for purposes of Section 21(e) of the Securities Act.

However, during the past year we have witnessed a significant amount of market instability stemming in part from the failure of these agencies to accurately measure the risks associated with mortgage-backed securities and other more…

I am very pleased Chairman Dodd and Ranking Member Shelby have chosen to have a hearing examining proposals to enhance the regulation of credit rating agencies.

Today's hearing addresses a critical part of this Committee's work to modernize the financial regulatory system--strengthening regulatory oversight of the safety and soundness of banks, thrifts, and holding companies.

So it would be very clear that this regulator would be the primary regulator of all these functions, even if they feel under the range of CFTC or SEC.

I think myself I would prefer it to be the Federal Reserve, but whichever--does have, I think, the need to look across our whole financial sector.

Should we have this agency dedicated funding, not through the appropriations process?

I just want to welcome him back and let him know what a good thing it is to see him back in the institution to which he brought such luster.

The constitutional prerogative of advice and consent and the Senate tradition requiring the approval of the home State Senators for judicial appointments, I think, lead to wonderful consequences for America in the caliber of the appointees…

I would also ask unanimous consent that the statement of the distinguished Chairman of the Senate Judiciary, Patrick Leahy, be added to the record.

I appreciate very much that you have been here to speak on behalf of Mr. Lange.