1. Inquiry

    Justice Dept. Investigating S&P

    epa02824987 (FILE) A file photograph shows a view of the offices of Standard and Poor's in New York, New York, USA, on 29 April 2010. Standard & Poor's Ratings Services on 14 July became the second credit agency this week, after Moody's, to threaten a downgrading of US long-term bonds.  EPA/JUSTIN LANE

    Justin Lane / EPA-Corbis

    Sources told The New York Times on Wednesday that the Justice Department is investigating the credit-rating agency Standard & Poor’s for improperly rating dozens of mortgage securities in the years leading up to the financial crisis. The investigation began before S&P’s high-profile downgrade of the U.S.’s AAA credit rating, but it is sure to add to the controversy over that decision. It is not immediately clear if the Justice Department investigation includes the other two rating agencies, Moody’s and Fitch. Sources also told the Times that the Securities and Exchange Commission is investigating S&P for possible misconduct.

    Read it at The New York Times