SEC moves forward with tougher oversight rules for credit-raters

The rules would require the credit rating firms to create and assess the new internal controls and provide the SEC with an annual report and require training of the analysts and prohibit certain agency employees from participating in the ratings process.

Critics argue that the agencies have a conflict of interest because they get paid by the firms they rate. 

A bipartisan report released in April by the Senate Permanent Subcommittee on Investigations found that the credit rating agencies, including Moody's and S&P, knew about problems in the housing market and the gave risky mortgage products low-risk ratings.