SEC could sue Standard & Poor's over faulty CDO rating
The SEC may charge Standard & Poor's with breaking federal security laws in its rating of a 2007 CDO.
The staff of the US Securities and Exchange Commission (SEC) is recommending that ratings agency Standard & Poor's (S&P) be prosecuted for breaking state laws in its 2007 AAA-rating of a $1.6 billion collateralised debt obligation (CDO).
McGraw-Hill Companies, which owns S&P, announced on Monday that it had received a Wells Notice from Commission staff on September 22 warning of potential legal action.
According to the notice, the staff recommends the SEC seek a civil injunction action against S
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