Securities Law Prof Blog

Editor: Eric C. Chaffee
Univ. of Toledo College of Law

A Member of the Law Professor Blogs Network

Monday, September 26, 2011

S&P Gets Wells Notice About CDO Rating

The McGraw-Hill Companies, Inc., the parent company for Standard & Poor's, issued a press release stating that on September 22, 2011, it received a "Wells Notice" stating that the SEC staff is considering recommending that the Commission institute a civil injunctive action against S&P, alleging violations of federal securities laws with respect to S&P's ratings for a particular 2007 offering of collateralized debt obligations, known as "Delphinus CDO 2007-1." If the SEC does determine to bring an action, it will be the first against a rating company based on a faulty rating. ProPublica has the background on the Delphinus CDO; see In a First, SEC Warns Rating Agency It May Bring Financial Crisis Lawsuit.

http://lawprofessors.typepad.com/securities/2011/09/sp-gets-wells-notice-about-cdo-rating.html

News Stories, SEC Action | Permalink

TrackBack URL for this entry:

http://www.typepad.com/services/trackback/6a00d8341bfae553ef015435b64199970c

Listed below are links to weblogs that reference S&P Gets Wells Notice About CDO Rating:

Comments

Post a comment