Detailed Summary

Municipal Bond Fairness Act - Amends the Securities Exchange Act of 1934 to direct the Securities and Exchange Commission (SEC) to require each registered nationally recognized statistical rating organization (NSRO) (credit rating agency) to: (1) establish and maintain credit ratings with respect to securities and money market instruments designed to assess the risk that investors in such instruments may not receive payment in accordance with their terms of issuance; and (2) define clearly any rating symbol and apply it consistently.

Prohibits the SEC from imposing any requirement that prevents an NSRO from establishing ratings that are complementary to such mandatory ratings and that are created to measure a discrete aspect of risk.

Directs the SEC to establish performance measures to determine when to review whether an NSRO has: (1) issued ratings in contravention of this Act; or (2) failed to adhere to its procedures and methodologies for issuing ratings.

Authorizes the Secretary of the Treasury to receive, analyze, and disseminate information, data, and material: (1) about entities that insure or guarantee the payment of principal and interest of any municipal obligation; and (2) from state insurance regulatory authorities and the National Association of Insurance Commissioners.

Status of the Legislation

Latest Major Action: 9/9/2008: Placed on the Union Calendar, Calendar No. 536.

Points in Favor

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Points Against

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