Tags: Italy | S&P | Downgrades | probe

Source: Italy Prosecutors Probe S&P in New York Over Downgrades

Tuesday, 05 Jun 2012 05:49 PM

 

Italian prosecutors have probed Standard & Poor's headquarters in New York for alleged market manipulation in an investigation over the credit-rating agency's downgrades of Italy, a legal source said on Tuesday.

The S&P base in New York was probed by prosecutors in Trani, a small town in southern Italy, under a law which holds companies liable for crimes committed by their employees.

A lawyer for S&P in Milan said he believed the development was a "formal step" in the ongoing Trani case. S&P has rejected the prosecutors' allegations as groundless.

The probe is part of a larger investigation into a raft of downgrades by S&P, Moody's and Fitch for debt-laden Italy that prompted a sell-off of Italian assets and fuelled long-running frustration with global rating agencies.

The Trani prosecutors launched their probes after receiving a legal complaint from two consumer rights groups, whose claims had been turned down by courts in Milan and Rome.

© 2015 Thomson/Reuters. All rights reserved.

1Like our page
2Share
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
© Newsmax Media, Inc.
All Rights Reserved