The other major ratings services, Moody’s Corp. (NYSE: MCO) and Fitch Ratings were not named as possible investigation targets according to the WSJ report.
All three of the agencies have been severely criticized for their starry-eyed ratings of subprime mortgage bonds just before the real estate collapse. The commission that studied the collapse named the ratings agencies among the “key enablers of the financial meltdown.”
At issue is whether or not S&P and possibly the other agencies broke securities laws or did they just miss all the signals. The former is big trouble; the latter is a big embarrassment.
For McGraw-Hill, which recently sold its education division so it could focus on its financial services businesses including S&P, a blizzard of civil lawsuits is not what the company needs right now. Shares are down about 3% in mid -afternoon trading, at $56.66 in a 52-week range of $42.02 to $58.62. Shares traded within $0.25 of the high earlier today.
Sponsored: Tips for Investing
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.