House Hearing to Probe Raters' Role in MF Global
January 7, 2012 12:49 PM EST
A U.S. congressional committee will hold a hearing on Feb. 2 to examine the role credit rating agencies played in the collapse of MF Global Holdings Ltd, a congressional staffer said on Friday.
Representatives of Standard and Poor's and Moody's Corp are expected to testify at the hearing, which will be held by House Financial Services' subcommittee on investigations, according to the staffer, who was not authorized to speak on the record.
Lawmakers are studying the vigilance of the ratings agencies, which did not significantly downgrade futures brokerage MF Global until just days before - or hours after - it filed for bankruptcy on October 31.
The firm collapsed after it was forced to reveal it had made a $6.3 billion bet on European sovereign debt, spooking investors and customers.
The hearing will come just over a month after Republican Representative Randy Neugebauer, the subcommittee's chairman, sent letters to Moody's Chief Executive Raymond McDaniel and Standard & Poor's President Douglas Peterson asking for detailed information about their procedures for determining MF Global's credit-worthiness.
Neither Moody's nor Standard & Poor's were immediately available for comment.
It was not immediately clear whether Fitch Ratings is part of the congressional inquiry.
(Reporting By Alexandra Alper; editing by Bernard Orr and Andre Grenon)
Most Popular Slideshows
- Typhoon Rammasun Claims 18 Lives in China, Incurs $4.32B Losses (PHOTOS)
- Kate Middleton's Pregnancy Hearsays: Possible Evidence Revealed [PHOTOS]
- Malaysia Airlines MH17: Vital Black Boxes Finally Land in Hands of Malaysian Authorities, Rebels Announce Ceasefire (PHOTOS/VIDEOS)
- Selena Gomez Turns 22 Today, Celebrates Early without Justin Bieber: Top 12 Interesting Facts About the Singer [SEE PHOTOS]
Join the Conversation
- Flight MH17 Attack: Russians Claim 'Putin A Terrorist,' Memorial at Dutch Embassy Overflows [PHOTOS]
- Malaysia Airlines MH17: Russian Govt Found Tinkering Wikipedia Crash Info
- Italian Appeals Court Overturns 2013 Sex with Underage Prostitute Conviction Against Former PM Silvio Berlusconi
- New Zealand Pays Tribute to Kiwi MH17 Victims Amid World Clamor for Russian Cooperation
- New Senator Jacqui Lambie Heats Up Aussie Radio by Saying Potential Suitor Should Be Rich and Well-Hung
- Motorola Moto G Vs. Xiaomi Mi3 – Low in Price, High -level Features
- Google Nexus 8 Release Date Soon Along with 2 More HTC Android Tablets – Reports
- Sony PlayStation 4 Outsells a Resurgent Xbox One in June
- Killer Xiaomi Mi4 at $369 Likely to Come With 5.0-Inch Display, Snapdragon 801 Processor, 3GB RAM and More
- NVIDIA Shield Gaming Tablet with Tegra K1 SoC Reported to be Released on July 29
- BlackBerry Passport Video Leak, Release Date, Five Fresh Features to Anticipate [Watch YouTube Clip] --Reports
- Iphone 6 Release Date Fast -Approaching, Reuse and Recycle Program Now in Australia