SEC could sue Standard & Poor's over faulty CDO rating

standard-poors

The staff of the US Securities and Exchange Commission (SEC) is recommending that ratings agency Standard & Poor's (S&P) be prosecuted for breaking state laws in its 2007 AAA-rating of a $1.6 billion collateralised debt obligation (CDO).

McGraw-Hill Companies, which owns S&P, announced on Monday that it had received a Wells Notice from Commission staff on September 22 warning of potential legal action.

According to the notice, the staff recommends the SEC seek a civil injunction action against S