WASHINGTON/NEW YORK (Reuters) – The Securities and Exchange Commission faces hurdles proving wrongdoing at credit-rating agencies, the agency’s enforcement chief said, pointing to the complexity of the cases and the industry’s strong legal defenses.
SEC Enforcement Director Robert Khuzami’s comments to Reuters came a day after McGraw-Hill Cos Inc disclosed on Monday that the agency may sue its Standard Poor’s unit for breaking securities laws.
Khuzami declined to comment specifically on SP, but his remarks show how a case against SP or other credit raters would be far from easy to win.
“There are some statutory challenges in the law, and some disclosure-related challenges that are unique to credit-rating agencies that can make the cases more challenging,” Khuzami said.
“But, we don’t let that stop us from investigating possible misconduct,” Khuzami added. “We are looking hard at them.”
The SEC’s investigation into SP may lead to the first charges against a major credit-rating company
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