Abstract In the past over forty years, credit rating agencies have been related to many important financial events: the bankruptcy of Penn Central Transportation Corporation in 1977, the bankruptcy of Orange County in 1994, 1997 Asia financial crisis, 2001 Anran affair, 2002 the bankruptcy of WorldCom，2008 subprime crisis. In all these events the negative effect of CRA exists. So it’s very important to strengthen the supervision of CRA. The analysis of the paper shows that it’s vital to enhance competition in the CRA market and weaken dependence on credit rating, which is embodied in relevant provisions of Credit Rating Agency Reform Act in 2006 and Restoring American Financial Stability Act 2010
2011, Vol. 28 
