Those waiting (and waiting) for stricter oversight of the rating agencies shouldn't hold their breath. The current plan under review is far weaker than what the Securities and Exchange Commission (SEC) was preparing just last year, and self-policing aspects of the plan have industry critics worried.

The framework, which is still under review but has begun to leak out, spells out policies and procedures for the agencies to follow on a voluntary basis in areas such as systemic rating procedures, conflicts of interest and dissemination of information, according to a regulatory source. Short of outright fraud, it would be up to the agencies themselves to enforce compliance. The SEC is also expected to create a rule that formally defines, for the first time, criteria that must be met to become a nationally recognized statistical rating organization (NRSRO), the designation that determines which credit raters can provide the debt ratings required by law. Today's list includes Moody's Investors Service, Standard & Poor's Corp., Fitch Ratings Ltd. and Dominion Bond Rating Service Ltd.

Hopes for a tougher approach were deflated recently when Annette Nazareth, head of the SEC's market regulation division, remarked publicly that she believed the commission lacked the authority to oversee the rating agencies and added that the rating agencies could sue the SEC if it tried to impose stricter guidelines. She has made that determination despite the fact that it was the SEC that created the NRSRO model and has been determining which companies make the cut ever since. The SEC, however, has not ruled out requesting from Congress a broader set of powers to clarify its oversight of the rating agencies, according to a source, but it appears the voluntary framework is the most likely option for the near-term.