Standard & Poor’s is reportedly the target of a federal investigation into whether the ratings company improperly rated dozens of mortgage securities that eventually imploded as the subprime market cratered ahead of the financial crisis.
According to The New York Times, the Justice Department is exploring civil charges against S&P, the nation’s largest credit ratings company and the subject of intense criticism for downgrading the U.S.’s pristine AAA credit rating earlier this summer.
While some have feared the U.S. could put political pressure on S&P, or its parent company McGraw-Hill (MHP), this DOJ probe began before the controversial August 5 downgrade, the Times reported. Congress is separately probing the S&P downgrade decision.
Full story: Report: DOJ Sets Sights On Standard & Poor’s | FoxBusiness.com.