From Yahoo: The Securities and Exchange Commission is considering taking civil action against Standard & Poor's for its rating of a 2007 mortgage debt offering. Such action could be just the first shot in a legal assault against the major credit rating agencies.
The three major agencies -- S&P, Moody's Investors Service and Fitch Ratings -- gave high ratings to mortgage investments that turned out to be worthless and contributed to the 2008 financial crisis.
If the SEC charges S&P with violating securities laws, it would mark the first time it's brought an enforcement action against a top rating agency. The formal notice from the SEC's enforcement staff gives S&P a chance to make a case that there's no basis for charges. S&P said it's been cooperating with the SEC and will continue to do so. It had no further comment.
Regardless of the outcome of the S&P case, the entire rating agency industry may be facing enforcement actions related to the financial crisis...
Read more at http://finance.yahoo.com/news/Possible-SEC-move-vs-SP-may-apf-205352855.html?x=0
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