June 17 U.S. regulators could file civil fraud
charges against some credit-rating agencies for their role in
developing mortgage-bond deals that helped bring about the
financial crisis, the Wall Street Journal reported, citing
people familiar with the matter.
The Journal said the Securities and Exchange Commission was
reviewing the conduct of companies including McGraw Hill's
Standard and Poor's and Moody's Investors Service owned
by Moody's Corp on at least two mortgage-bond deals.
The paper said a Standard & Poor's spokeswoman declined to
comment, and it quoted Michael Adler, a spokesman for Moody's,
as saying: "Although Moody's is uncertain as to what The Wall
Street Journal is referring, we would certainly cooperate with
any requests we receive from the SEC."
Reuters could not reach Standard and Poor's, the SEC or
Moody's for comment.
The SEC is considering whether the credit-ratings firms
failed to do enough research to be able to rate adequately the
pools of subprime mortgages and other loans that underpinned the
mortgage-bond deals, the paper said.
In May, the SEC sought public comment on proposals that the
credit-rating agencies needed to reveal more about how they
judge financial products and how those ratings perform over
(Reporting by Vaishnavi Bala in Bangalore; Editing by
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