Investor advocates and Congress members who favor stricter financial regulation are internally clashing over a proposed addition to the Dodd-Frank Act that would create a board that matched ratings with ratings jobs. Supporters argue the board would elimate the conflict of interest that allows companies to choose and pay their own evaluators. Opponents of the proposal, such as Professor David Reiss, claim it is too narrow and does not allow for alternatives. In an article on the issue in Bloomberg Law Reports, Professor Reiss calls the proposal out of proportion to the problem, comparing it to "burning down a house to kill a cockroach. If you were to implement something like this, you would probably slow down the rate of change, the rate of innovation."
Read the full article.