The FDIC board approves an initial step to replace the use of private credit ratings when...

|By:, SA News Editor

The FDIC board approves an initial step to replace the use of private credit ratings when reviewing bank capital levels, but some say the move required under Dodd-Frank could cause more harm than good. "There is a little bit of throwing out the baby with the bathwater," John Dugan says. Finding alternatives to raters will prove "challenging," Sheila Bair adds.