SEC could file civil fraud charges against some credit rating agencies

by Reuters
Saturday, July 2nd, 2011
(Reuters) - U.S. regulators could file civil fraud charges against some credit-rating agencies for their role in developing mortgage-bond deals that helped bring about the financial crisis, the Wall Street Journal reported, citing people familiar with the matter.

The Journal said the Securities and Exchange Commission was reviewing the conduct of companies including McGraw Hill's Standard and Poor's and Moody's Investors Service owned by Moody's Corp on at least two mortgage-bond deals.

The paper said a Standard & Poor's spokeswoman declined to comment, and it quoted Michael Adler, a spokesman for Moody's, as saying: "Although Moody's is uncertain as to what The Wall Street Journal is referring, we would certainly cooperate with any requests we receive from the SEC."

http://www.reuters.com/article/2011/06/17/standardandpoors-idUSL3E7HH0H220110617