Tags: WSJ | S&P | probe | Ratings

WSJ: S&P Faces More Scrutiny on Mortgage Bond Ratings

Tuesday, 17 Jan 2012 10:29 AM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink

The Justice Department has stepped up its investigation of Standard & Poor's mortgage bond ratings during the financial crisis, the Wall Street Journal reported on Tuesday.

At least five former S&P analysts have been contacted by federal prosecutors in recent weeks, after some had not heard from investigators for more than six months, the newspaper said.

The McGraw-Hill Cos. Inc. unit disclosed in September it had received a Wells notice from the Securities and Exchange Commission indicating it could face civil charges for its ratings of a 2007 mortgage bond deal called Delphinus 2007-1.

It has not yet disclosed any investigation by the DOJ, which the WSJ reported is a civil probe.

Prosecutors are examining whether S&P managers pushed to weaken standards the company had set for rating the mortgage deals, and whether the company followed its established criteria in assigning ratings.

The recent interviews lasted two to three hours, and the former employees were told they would likely by contacted again, the Wall Street Journal said.

A spokesman for S&P declined comment.

© 2014 Thomson/Reuters. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Report: White House Ignored 'Alarm Bells' About Border Crisis

Monday, 21 Jul 2014 23:18 PM

The Obama administration two years ago reportedly ignored the "ringing alarm bells" of a potential crisis of unaccompani . . .

Judge Tosses Ron Johnson's Lawsuit Against Obamacare Subsidies

Monday, 21 Jul 2014 19:43 PM

A federal judge on Monday threw out Wisconsin Republican Sen. Ron Johnson's lawsuit challenging the federal funds that l . . .

Americans from Texas, California Killed in Gaza

Monday, 21 Jul 2014 22:42 PM

 . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved