Quantcast
Connect with us

SEC mulls charges against McGraw Hill in CDO case

Published

on

(Reuters) – McGraw-Hill Cos Inc said U.S. regulators may charge its Standard & Poor’s ratings unit with violating federal securities laws with ratings on a repackaged mortgage bond in 2007.

The company said it received a Wells Notice from the U.S. Securities and Exchange Commission that commission staff may recommend a civil lawsuit against the unit for a rating on 2007 collateralized debt offering (CDO) known as “Delphinus CDO 2007-1.” The staff may recommend that the SEC seek monetary penalties, the company said in a statement today.

ADVERTISEMENT

Regulators send Wells Notices to companies or people to give them a chance to argue why government should not file an enforcement action against them.

The company said it received the notice on September 22.

The SEC’s investigation comes as McGraw-Hill prepares to split into two publicly-traded companies, one holding Standard & Poor’s and market information services and another holding its textbook publishing company.

Institutional shareholders, led by Jana Partners, have pushed the company to completely separate the S&P ratings business from the information services.

S&P issued the CDO rating in question at the end of the credit boom that carried mortgage lending and house prices to unsustainable heights. S&P put triple-A credit ratings on many mortgage-related securities which later went into default when house prices collapsed.

ADVERTISEMENT

S&P’s failures with structured finance ratings were recently cited by Washington politicians as reason to doubt the agency’s downgrade of U.S. government debt in August from triple-A.

(Reporting by David Henry in New York, Aditi Sharma in Bangalore; Editing by Sayantani Ghosh and Derek Caney)

ADVERTISEMENT

Report typos and corrections to: [email protected].
READ COMMENTS - JOIN THE DISCUSSION
Continue Reading

Breaking Banner

Trump supporters lose their minds when church shows Nativity scene in immigrant cages

Published

on

MAGA supporters are losing their minds after a photo of the Nativity scene at Claremont United Methodist Church was posted to Facebook.

The scene depicts Mary, Joseph, and the baby Jesus separated and put in their own cages, a reference to the families separated at the U.S.-Mexico border. Inside the church, the family is shown as reunited.

Senior minister Karen Clark Ristine shared the image on Facebook with the message hoping that everyone in the United States could see the photo and read the story for Christmas.

"The theological statement posted with the nativity: In a time in our country when refugee families seek asylum at our borders and are unwillingly separated from one another, we consider the most well-known refugee family in the world," she wrote. "Jesus, Mary, and Joseph, the Holy Family. Shortly after the birth of Jesus, Joseph and Mary were forced to flee with their young son from Nazareth to Egypt to escape King Herod, a tyrant. They feared persecution and death."

Continue Reading

Breaking Banner

Columnist nails Republicans for only caring about Hunter Biden now that his father is running for president

Published

on

One of the critical questions that must be answered by Republicans, according to one Washington Post columnist, is why they didn't care about Hunter Biden's position at Burisma for so many years.

In a Sunday piece, James Downie asked why Republicans didn't do anything about Hunter Biden five years ago when it was first revealed that vice president's son was on the board of a Ukraine energy company. The House and the Senate were being run by Republicans until this year. They haven't had problems with other partisan investigations against high-profile leaders. There were ten investigations into the Benghazi attacks, three hearings, 29 witnesses, and former Secretary of State Hillary Clinton testified for 11 hours. Yet, it was only after Joe Biden announced he was running against President Donald Trump that Republicans discovered an issue.

Continue Reading
 

Breaking Banner

Republican staffer caught spying on Democrats during Judiciary Committee meetings

Published

on

A Republican staffer from the Ways and Means committee was caught spying on Democrats during their work over the weekend.

According to a Judiciary Committee source, the female staffer was ultimately discovered and ran out of the committee room once it was discovered she was there, tweeted Olivia Beavers, a writer at "The Hill."

"A Judiciary source says the committee, which has been practicing for their Monday impeachment hearing this whole weekend, came across a female GOP Ways and Means staffer in the hearing room today, but that she ran out once discovered," she tweeted.

https://twitter.com/Olivia_Beavers/status/1203784487559213056

Continue Reading