“The U.S. Securities and Exchange Commission barred Egan-Jones Ratings Co. from issuing ratings on certain bonds, an unprecedented step by the regulator and a setback for a small credit-rating firm with a history of courting controversy.
The SEC said Tuesday that Egan-Jones couldn’t officially rate bonds issued by countries, U.S. states and local governments, or securities backed by assets such as mortgages, for at least the next 18 months.
The ban was part of an agreement the SEC reached with Egan-Jones and its president, Sean Egan, to settle charges that they filed inaccurate documents with the regulator in 2008. The SEC alleged that Egan-Jones misled investors about its expertise, and that Mr. Egan caused the firm to violate conflict-of-interest provisions.
The firm and Mr. Egan agreed to the settlement without admitting or denying the findings.
Mr. Egan didn’t respond to a request for comment. He has been outspoken in the past in his defense of the firm and its ratings…..”
If you enjoy the content at iBankCoin, please follow us on Twitter
