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S&P faces fraud charges over mortgage ratings
CNBC/Financial Times ^ | 23 July 2014 | Kara Scannell

Posted on 07/24/2014 8:22:06 PM PDT by Lorianne

Standard & Poor's may face securities fraud charges for ratings given to six commercial mortgage-backed securities issued in 2011, the credit rating company said.

The potential civil lawsuit is the latest legal issue for the credit rating company, which along with its competitors have faced intense regulatory scrutiny following the financial crisis.

S&P, a unit of McGraw Hill, disclosed on Wednesday that it had received a Wells notice from the Securities and Exchange Commission indicating its enforcement division staff intended to recommend that the five member commission authorize civil charges against the company.

"S&P has been co-operating with the commission in this matter and intends to continue to doso," it said in a statement. S&P said the Wells notice related to the six securities "and public disclosure made by S&P regarding those ratings thereafter".

(Excerpt) Read more at cnbc.com ...


TOPICS: Business/Economy
KEYWORDS:

1 posted on 07/24/2014 8:22:06 PM PDT by Lorianne
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To: Lorianne
The Fed forces them to make the loans to people who will never pay them back, then they get to prosecute them for making bad loans!

It's good to be King.

2 posted on 07/24/2014 8:23:16 PM PDT by E. Pluribus Unum ("The man who damns money obtained it dishonorably; the man who respects it earned it." --Ayn Rand)
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To: Lorianne

There’s an investment the “we’re so smart we can manage anything” folks at McGraw-Hill are probably wishing they could get a do-over on.


3 posted on 07/24/2014 8:25:28 PM PDT by Steely Tom (How do you feel about robbing Peter's robot?)
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To: Lorianne

better late than never, I guess.


4 posted on 07/24/2014 8:37:58 PM PDT by CPT Clay (Follow me on Twitter @Clay N TX)
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To: E. Pluribus Unum

Well, so far, one out of three posters gets it.


5 posted on 07/25/2014 3:36:38 AM PDT by Balding_Eagle (If America falls, darkness will cover the earth for a thousand years.)
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To: E. Pluribus Unum
How the Democrats Created the Financial Crisis: Kevin Hassett

With landmark lawsuit, Barack Obama pushed banks to give subprime loans to Chicago’s African-Americans

6 posted on 07/25/2014 4:08:29 AM PDT by TwelveOfTwenty (See my home page for some of my answers to the left's talking points.)
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To: E. Pluribus Unum
This is punishment for S&P downgrading Fedzilla’s credit rating a while ago. The other credit rating companies are too afraid of Fedzilla to ever do so.
7 posted on 07/25/2014 4:10:49 AM PDT by Reeses
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