(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.
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.
via news.yahoo.com
