Amid increasing scrutiny of credit-rating agencies, Moody's Investors Service'schief compliance officer has left his position, one that he held since Aug. 2009, according to a report in the Wall Street Journal.
Jeffrey R. Schwartz had worked in the regulatory-affairs unit of the ratings agency since January 2008. According to regulatory documents on the company's website, Janet Holmes became Moody's interim chief compliance officer in April.
Schwartz's departure follows increasing regulation of the bond-rating industry by the Securities and Exchange Commission as a result of the Dodd-Frank law that passed last year. In a unanimous vote last month, the SEC moved for more stringent regulation of credit-rating agencies, such as Moody's.
The SEC's proposals include enabling investors to compare performance more easily and shedding more light about the assumptions that dictate bond ratings.