Skip to comments.S&P faces fraud charges over mortgage ratings
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 ...
It's good to be King.
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.
better late than never, I guess.
Well, so far, one out of three posters gets it.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.