Civil action against S&P

The SEC is considering taking civil action against S&P for its rating of a specific debt obligation prior to the 2008 financial crisis.

Many pundits have laid blame for the run up in mortgage and other debt-based securities at the feet of the ratings agencies and linked that activity to the eventual market crash.

This is the first direct action against a ratings agency and comes in the wake of S&P taking what some called a reckless action in downgrading U.S. sovereign debt in late August.

Staff

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