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WASHINGTON — The Securities and Exchange Commission is considering taking civil action against Standard & Poor’s for its rating of a 2007 mortgage debt offering. Such action could be the first shot in a legal assault against the major credit rating agencies.
If the SEC charges S&P with violating securities laws — it gave high ratings to mortgage investments that turned out to be worthless — it would mark the first time it has brought an enforcement action against a top rating agency. Regardless of the outcome of the S&P case, the entire rating agency industry may be facing enforcement actions related to the financial crisis. The Associated Press
