Describe the Dodd-Frank legislation with regard to credit rating agencies

What will be an ideal response?

The Dodd-Frank legislation was intended to make it easier to sue credit rating agencies. Additionally, this statute eliminated any federal requirement that banks and other investors rely on ratings set out by these agencies. The legislation orders the Securities and Exchange Commission (SEC) to study ways to eliminate ratings shopping by issuers. It allows the SEC to deregister ratings agencies that have a bad record of violating financial regulations. All ratings agencies now have to disclose how they arrive at ratings; and how they comply with conflict-of-interest regulations.