U.S., states plan civil charges against S&P over ratings: WSJ
February 5, 2013 6:21 AM EST
Federal and state prosecutors intend to bring civil charges against Standard & Poor's for wrongdoing in its rating of mortgage bonds prior to the 2008 financial crisis, The Wall Street Journal said on Monday, citing people familiar with the matter.
Allegations against the McGraw-Hill Cos
A move by U.S. officials would be the first federal enforcement action against a major credit rating agency over alleged illegal behavior tied to the financial crisis.
Several state attorneys general are expected to join the case, the newspaper said.
McGraw-Hill and the U.S. Department of Justice were not immediately available for comment.
Shares of McGraw-Hill traded as much as 2.6 percent lower following news of the possible charges. In afternoon trading, they were down $1.21, or 2.1 percent, at $57.13.
S&P and its main rivals, Moody's Corp's
In a variety of lawsuits brought by investors, S&P has maintained that its ratings constitute opinions protected by the 1st Amendment to the U.S. Constitution.
(Reporting by Jonathan Stempel in New York; Editing by Steve Orlofsky)
Most Popular Slideshows
- Pope Francis Meets Sudanese Woman Who Was Spared Death for Apostasy (PHOTOS)
- Malaysia Airlines Flight MH17: King Williem-Alexander, Queen Maxima Hold Solemn Reception Ceremony for Victims
- Transfer News: FC Barcelona Shockingly Sign Valencia Defender [PHOTOS]
- Jennifer Lawrence & Nicholas Hoult Allegedly Split: Mad Max Actor Cheats with Kristen Stewart & Riley Keough - Reports
Join the Conversation
- Apple iPhone 6 on Two Confirmed Release Dates, New Parts Leaked Suggesting Bigger iPhone to Come
- Fresh Samsung Galaxy S5 Alpha Images Leaked: 4.8-Inch Metallic Body Could Give Competition to 4.7-Inch iPhone 6
- Nexus 5 and Nexus 7 Android 5.0 L Material Design Coming with More Interface Changes
- Xiaomi Mi4 vs OnePlusOne vs Nexus 5: Mi4 is the ‘Perfect’ Phone
- Israeli Women Stripping Naked for IDF Soldiers
- HTC One M8 Android 4.4.3 KitKat Update Roll Out, Introducing the HTC One Remix
- OnePlus One Android 4.4.4 KitKat and Android L Update Guide