Friday, April 20, 2012
Egan-Jones Ratings Co. says that the SEC will file an administrative action against the rating firm soon. The charges stem from the firm's 2008 application to the SEC to rate bonds and asset-backed securities; the firm allegedly lied about how many securities it rated and for how long. Penalties could include cancelling the firm's ability to issue officially recognized ratings for those classes of securities. Egan-Jones denies all charges.
Egan-Jones is one of nine credit-rating firms approved by the SEC.