John Walsh, acting Comptroller of the Currency, says a total ban on the use of credit rating references in financial reform could make it difficult for U.S. institutions to meet capital and liquidity requirements set by the Basel Committee on Banking Supervision. Walsh says the rules should be amended to merely “preclude undue or exclusive reliance” on credit ratings. The Dodd-Frank Act calls for regulators to use appropriate standards for measuring creditworthiness in place of the ratings.
