The amendment to the financial regulation reform bill would make the employees of Nationally Recognized Statistical Rating Organizations - such as Moody's Investor Service, Standard & Poor's, and Fitch Ratings - eligible for protection under whistleblower protections signed into law in the Corporate and Auditing Accountability, Responsibility and Transparency Act of 2002 (Sarbanes-Oxley).
"People who know of wrong doing should feel comfortable to come forward without fear of retaliation," Grassley said. "Providing whistleblower protection to credit rating agency employees is another way to shore up public trust in our financial system and help prevent history from repeating itself by ensuring those who know of problems feel free to speak up."
Grassley secured the provisions in the 2002 Sarbanes-Oxley law after the fall out of several Enron-like scandals led to a crack down on corporate fraud and abuse. The provisions made federal whistleblower protections available to employees of publicly traded companies for the first time ever.