{"id":46120,"date":"2015-01-26T07:45:21","date_gmt":"2015-01-26T12:45:21","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=46120"},"modified":"2015-01-26T09:21:06","modified_gmt":"2015-01-26T14:21:06","slug":"standard-poor-to-pay-77-million-for-ratings-violations","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/01\/2015\/standard-poor-to-pay-77-million-for-ratings-violations.html","title":{"rendered":"Standard & Poor’s To Pay $77 Million For Ratings Violations"},"content":{"rendered":"

\"Standard-and-Poors\"<\/a>New York (HedgeCo.Net) – Standard & Poor’s has agreed to pay more than $58 million to settle SEC charges rising from a series of federal securities law violations by Standard & Poor\u2019s Ratings Services involving fraudulent misconduct in its ratings of certain commercial mortgage-backed securities (CMBS).<\/p>\n

S&P will also pay an additional $19 million to settle parallel cases announced by the New York Attorney General\u2019s office.<\/p>\n

\u201cThese CMBS-related enforcement actions against S&P demonstrate that \u2018race to the bottom\u2019 behavior by ratings firms will not be tolerated by the SEC and other regulators. When ratings standards are compromised in pursuit of market share, a firm\u2019s disclosures cannot tell a different story,\u201d said Michael J. Osnato, Chief of the SEC Enforcement Division\u2019s Complex Financial Instruments Unit.<\/p>\n

The SEC issued three orders instituting settled administrative proceedings against S&P.\u00a0 One order, in which S&P made certain admissions, addressed S&P\u2019s practices in its conduit fusion CMBS ratings methodology.<\/p>\n

\u201cInvestors rely on credit rating agencies like Standard & Poor\u2019s to play it straight when rating complex securities like CMBS,\u201d said Andrew J. Ceresney, Director of the SEC Enforcement Division.\u00a0 \u201cBut Standard & Poor\u2019s elevated its own financial interests above investors by loosening its rating criteria to obtain business and then obscuring these changes from investors.\u00a0 These enforcement actions, our first-ever against a major ratings firm, reflect our commitment to aggressively policing the integrity and transparency of the credit ratings process.\u201d<\/p>\n

S&P\u2019s public disclosures affirmatively misrepresented that it was using one approach when it actually used a different methodology in 2011 to rate six conduit fusion CMBS transactions and issue preliminary ratings on two more transactions.\u00a0 As part of this settlement, S&P agreed to take a one-year timeout from rating conduit fusion CMBS.<\/p>\n

Alex Akesson
\nEditor for HedgeCo.net<\/a>
\nalex@hedgeco.net<\/a>
\nHedgeCo.Net<\/a> is a premier hedge fund database<\/a> and community for qualified and accredited investors only. Membership in HedgeCo.net<\/a> is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"

New York (HedgeCo.Net) – Standard & Poor’s has agreed to pay more than $58 million to settle SEC charges rising from a series of federal securities law violations by Standard & Poor\u2019s Ratings Services involving fraudulent misconduct in its ratings […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16034,3],"tags":[],"class_list":["post-46120","post","type-post","status-publish","format-standard","hentry","category-hedge-fund-rulings","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/46120","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=46120"}],"version-history":[{"count":6,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/46120\/revisions"}],"predecessor-version":[{"id":46137,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/46120\/revisions\/46137"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=46120"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=46120"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=46120"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}