BBB- penalty

22 January 2013 By Antony Currie Follow @AntonyMCurrie

The SEC has barred Sean Egan and his scrapper of a firm from some sanctioned ratings after they wrongly asserted experience with asset-backed deals. Of course, familiarity hasn’t necessarily helped Moody’s, S&P or Fitch produce smarter ratings. Neither does a government blessing.

This content is for Subscribers only

Context News

Egan-Jones Ratings and President Sean Egan agreed not to rate asset-backed and other securities for at least 18 months as part of a Jan. 22 settlement with the U.S. Securities and Exchange Commission. The watchdog alleged they made willful, material misstatements and omissions when they registered to become a Nationally Recognized Statistical Rating Organization for asset-backed securities and government securities in 2008.
The SEC found that Egan-Jones had not published any ratings for issuers of asset-backed debt or government securities until after filing its application to become an NRSRO in 2008, despite claiming in its application that it had been doing so since 1995.
In addition to the bar, the company must also correct deficiencies the SEC found in its examination.

Context News

Email a friend

Please complete the form below.

Required fields *