SEC Suspends S&P For Being Bad

Author:
Updated:
Original:

Standard & Poor’s will be suspended for a year from rating securities in the biggest piece of the commercial-mortgage bond market in a $60 million settlement with the U.S. Securities and Exchange Commission, according to a person with knowledge of the matter. The deal, which the person said may be announced as soon as tomorrow, will be the agency’s toughest action against a major credit rater. The SEC, which has been examining whether the credit rater bent criteria to win business in 2011, will ban the company from grading securities backed by multiple commercial loans, the person said. [Bloomberg]

Related