SEC investigating S&P's downgrade of U.S. debt: report

Fri Aug 12, 2011 1:40am EDT

The Standard and Poor's building is seen in New York, August 8, 2011. REUTERS/Brendan McDermid

The Standard and Poor's building is seen in New York, August 8, 2011.

Credit: Reuters/Brendan McDermid

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(Reuters) - The U.S. Securities and Exchange Commission (SEC) has asked rating agency Standard & Poor's (S&P) to disclose which employees knew of its decision to downgrade U.S. debt before it was announced last week, the Financial Times said, citing people familiar with the matter.

SEC's move is part of a preliminary examination into potential insider trading, the FT said.

The inquiry was made by the SEC's examination staff, which has oversight of credit rating firms, one person familiar with the matter told the newspaper.

However, the securities regulator is not aware of a leak from an S&P insider, nor was it aware of an aberrational trade, the paper said.

S&P and SEC could not immediately be reached for comment by Reuters.

The U.S. Senate Banking committee has begun looking into last week's decision by S&P's to downgrade the U.S. credit rating, a committee aide told Reuters on Monday.

(Reporting by Sakthi Prasad in Bangalore; Editing by David Cowell)

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Comments (3)
cpasteve wrote:
Sounds like a fishing expedition.

Aug 12, 2011 7:12am EDT  --  Report as abuse
Alfred.Brock wrote:
In my opinion, David Beers of Standard and Poor’s is nothing more than an economic terrorist serving the financial interests of his masters at McGraw-Hill. It is my opinion that the board of McGraw-Hill, including Harold McGraw, III is nothing more than a terrorist organization whose main intent in their publishing business is to extract as much money as it can from the public school system and government agencies worldwide by frightening ignorant people, instilling an atmosphere of desperation, spewing the media with misleading information and biased propaganda. All so that they can maintain the weak and fragile structure of their companies in order to continue offering textbooks at exhorbitant prices – like ‘Macmillan/McGraw-Hill Math, Grade 1, Pupil Edition’ – $45.72 (American) What about that?

Aug 12, 2011 7:21am EDT  --  Report as abuse
robertsgt40 wrote:
Would that be the same SEC that sat on their collectives asses for 10yrs(after being tipped off) as Bernie Mad-off with 65billion? Or the same SEC that watched Wall Street and Goldman & Co loot the nation with the crap they called “investments”? Keystone Cops come to mind.

Aug 15, 2011 3:07pm EDT  --  Report as abuse
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