{"id":5754,"date":"2015-01-21T00:00:00","date_gmt":"2015-01-21T06:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2015\/01\/standard_poors_to_pay_almost_8"},"modified":"2022-05-06T12:23:50","modified_gmt":"2022-05-06T17:23:50","slug":"standard-poors-to-pay-almost-8","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/standard-poors-to-pay-almost-8\/","title":{"rendered":"Standard & Poor\u2019s to Pay Almost $80 Million to Resolve SEC Charges Over Ratings Fraud Involving CMBSs"},"content":{"rendered":"

Standard & Poor\u2019s has agreed to settle U.S. Securities and Exchange Commission charges accusing the credit rating agency of fraudulent misconduct when rating certain commercial mortgage-backed securities<\/a>. As part of the settlement, S & P will pay close to $80 million\u2014$58 million to resolve the regulator\u2019s case, plus $12 million to settle a parallel case by the New York Attorney General\u2019s Office, and $7 million to resolve the Massachusetts Attorney General\u2019s case.<\/p>\n

The SEC put out three orders to institute resolved administrative proceedings against the credit rater. One order dealt with S & P\u2019s practices involving conduit fusion SMBS ratings methodology. The Commission said that the credit rating agency\u2019s public disclosures misrepresented that it was employing one approach when a different one was applied to rate several conduit fusion CMBS transactions, as well for putting out preliminary ratings on two transactions. To resolve these claims S & P will not rate conduit fusion CMBSs for a year.<\/p>\n

The SEC\u2019s second order said that after S & P was frozen out of the market for its conduit fusion ratings in 2011, the credit rating agency published a misleading and false article claiming to show that it\u2019s overhauled credit ratings criteria enhancement levels could handle economic stress equal to \u201cGreat Depression-era levels.\u201d The Commission said that S & P\u2019s research was flawed, were made based on inappropriate assumptions, and the data used was decades off from the Depression\u2019s serious losses. Without denying or admitting to the findings, S & P has consented to publicly retract the misleading and false data about the Depression era-related study and rectify inaccurate descriptions that were published about its criteria.<\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

Standard & Poor\u2019s has agreed to settle U.S. Securities and Exchange Commission charges accusing the credit rating agency of fraudulent misconduct when rating certain commercial mortgage-backed securities. As part of the settlement, S & P will pay close to $80 million\u2014$58 million to resolve the regulator\u2019s case, plus $12 million to settle a parallel case […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3845,3757,3883],"tags":[3498],"class_list":["post-5754","post","type-post","status-publish","format-standard","hentry","category-credit-rating-agencies","category-mortgagebacked-securities","category-standard-and-poors","tag-cmbs-fraud"],"yoast_head":"\nStandard & Poor\u2019s to Pay Almost $80 Million to Resolve SEC Charges Over Ratings Fraud Involving CMBSs — Investor Lawyers Blog — January 21, 2015<\/title>\n<meta name=\"description\" content=\"Standard & Poor\u2019s has agreed to settle U.S. Securities and Exchange Commission charges accusing the credit rating agency of fraudulent misconduct 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