I would like to clarify a point before beginning. Rating agencies are not regulated by the federal government.
Mr. Chair, we must make a distinction between ABCP that is issued by banks, and ABCP that is issued by other institutions. Non-bank ABCP was the source of the problems which appeared in August 2007. Restructuring was concluded in January 2009. The role of credit rating agencies has been raised by many people. It has also been raised in reference to the U.S. situation. Right now, the international securities organization is reviewing a code of conduct for rating agencies, and regulatory commissions are reviewing their own responsibilities and are considering the possibility of perhaps changing their role with a view to regulating rating agencies.
The Bank of Canada currently accepts bank-sponsored ABCP. The Bank of Canada recently adopted in-house rules concerning the eligibility of ABCP. These are new and rigorous rules.