Posts tagged 'Egan-Jones'

SEC charges Egan-Jones

Washington, D.C., April 24, 2012 — The Securities and Exchange Commission today announced charges against Egan-Jones Ratings Company (EJR) and its owner and president Sean Egan for material misrepresentations and omissions in the company’s July 2008 application to register as a Nationally Recognized Statistical Rating Organization (NRSRO) for issuers of asset-backed securities (ABS) and government securities. EJR and Egan also are charged with material misrepresentations in other submissions furnished to the SEC and violations of record-keeping and conflict-of-interest provisions governing NRSROs.

Full SEC Order here. The regulator has alleged that Egan-Jones made a material misrepresentation in claiming to have rated government debt and ABS — and that it hadn’t — when making its NRSRO application, and that conflicts of interest were present: Read more

DBRS, or the rating agency you’ve never heard of

The Wall Street Journal on Monday ran an important and timely story on the continued practice of ‘ratings shopping’, in which an issuer approaches multiple agencies in an effort to get the highest possible rating:

Real-estate investment firm Redwood Trust Inc. approached two credit-rating firms early this year to rate a new mortgage-bond offering. It was an important deal, the first of its kind in two years. Read more

Rating shopping, governmental edition

As Thomas Friedman once quipped:

We live in a two-superpower world. There is the US and there is Moody’s. The US can destroy a country by levelling it with bombs: Moody’s can destroy a country by downgrading its bonds.  Read more

Credit agencies on the block, live

The SEC is  hosting an all-day roundtable discussion on the credit rating agencies and their role in the financial crisis.

The agenda and list of speakers for today’s session are available hereRead more