Summary
This 8-K filing from S&P Global Inc. (then part of The McGraw-Hill Companies, Inc.) on September 26, 2011, discloses a significant development regarding an ongoing SEC investigation. The company received a Wells Notice from the SEC Staff, indicating that the Staff is considering recommending a civil injunctive action against Standard & Poor's Ratings Services. The alleged violations pertain to S&P's ratings for a specific 2007 offering of collateralized debt obligations (CDOs) known as "Delphinus CDO 2007-1". The Wells Notice is a preliminary step and not a formal finding of wrongdoing. It provides S&P an opportunity to present its case to the SEC Staff before a final decision is made on whether to pursue enforcement action. The potential remedies that the SEC Staff may recommend include civil money penalties, disgorgement of fees, and other equitable relief. S&P has been cooperating with the SEC and intends to continue its cooperation.
Key Highlights
- 1S&P Global Inc. (then The McGraw-Hill Companies) received a Wells Notice from the SEC.
- 2The notice concerns S&P's ratings for a 2007 collateralized debt obligation (CDO) offering, Delphinus CDO 2007-1.
- 3The SEC Staff is considering recommending a civil injunctive action against S&P Ratings Services.
- 4Allegations involve potential violations of federal securities laws related to the CDO ratings.
- 5The SEC may seek civil penalties, disgorgement of fees, and other equitable relief.
- 6A Wells Notice is not a formal finding of wrongdoing and allows S&P to respond.
- 7S&P is cooperating with the SEC investigation and intends to continue doing so.