House panel votes for new rating agency rules

The House Financial Services Committee has voted to set new rules for credit rating agencies, which lawmakers say misled investors by giving high marks to risky securities tied to subprime mortgages.

The proposal was approved by a 49-14 Wednesday vote in a rare bipartisan show of support.

The bill, by Pennsylvania Democratic Rep. Paul Kanjorski, is the panel’s latest attempt to tighten the rules of the road for financial institutions after last year’s market crisis.

Copyright 2009 The Associated Press.