Securities Law Prof Blog

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

Thursday, May 3, 2012

ProPublica: Why is SEC Picking on Egan-Jones?

Jesse Eisinger (ProPublica) goes after the SEC for bringing an enforcement action against the upstart ratings firm Egan-Jones allegedly for including inaccurate information in its SEC filing.  He makes some good points.  First, it isn't the most compelling case of financial wrongdoing.  Second, it gives the appearance that the SEC is going after a longstanding critic of the Big Three ratings firms.  They make their money from the issuers of the securities they rate.  Egan-Jones, in contrast, gets paid by the users of his ratings.  Whether you agree with Eisinger or not, it's well worth reading.  ProPublica, SEC Keeps Ratings Game Rigged

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