US regulators may charge Standard & Poor's with violating federal securities laws when it gave top ratings in 2007 to a repackaged mortgage bond that soon tanked. Securities and Exchange Commission action against S&P would be one of the first by the commission against a major rating agency in the wake of the financial crisis.
S&P parent McGraw-Hill Cos Inc said it might have to pay civil penalties to the SEC. McGraw-Hill shares were down 2.2 percent in morning trading. The SEC investigation comes as McGraw-Hill prepares to split into two publicly traded companies, one holding S&P and market information services, and the other holding the company's textbook publishing business. At issue is a 2007 collateralized debt obligation known as "Delphinus CDO 2007-1."
Comments
Comments are closed.