Ann Wagner: “I thank the chairman of the Capital Markets, Securities, and Investments Subcommittee, my friend and colleague, Mr.…”

“I thank the chairman of the Capital Markets, Securities, and Investments Subcommittee, my friend and colleague, Mr. Huizenga, for his support. Mr. Speaker, first, I also wish to thank the ranking member and Congressman Foster for his support of this issue both in the 114th Congress and the 115th Congress. H.R. 3911, the Risk-Based Credit Examination Act, makes the criteria required in annual reporting by nationally recognized statistical rating organizations, or NRSROs, just that: risk based. In 2008, the financial crisis taught us many lessons. It also highlighted how NRSROs regularly gave high ratings to mortgage-backed securities. As we now know, these mortgage-backed securities led to one of the largest financial collapses, which some economists have put on par with the Great Depression of the 1930s. In 2010, with the passage of Dodd-Frank and in an attempt to prevent previous mistakes, these organizations were hit with new requirements aimed at enhancing their disclosures and transparency. Unfortunately, the one-size-fits-all annual reporting requirements mandated under section 932 of Dodd-Frank placed unnecessary burdens and compliance costs on small NRSROs that were in no way the cause of the financial crisis. Contrary to what some might believe, more regulation doesn't solve everything; in fact, it doesn't solve most things.…”