Grassley drops support for financial reform

Grassley cited use of Troubled Asset Relief Program money as a new offset, the weakening of the Senate’s derivatives title, using a “budget gimmick” on FDIC fees, greater Federal Reserve accountability and a change in the conflicts of interest with credit rating agencies. 

The Senate-passed measure contained a Grassley amendment to break up the conflict of interest where security issuers get to select credit rating agencies. 

“A lack of independent assessment in this area was a major factor in what led up to the meltdown in 2008,” he said.