S&P Said to Be Probed by N.Y. AG on CMBS Ratings

The New York State Attorney General, Eric Schneiderman, is investigating Standard & Poor's (S&P) to determine if it failed to adhere to its own rating methodology for commercial mortgage bonds to gain business from banks. McGraw Hill Financial, the parent company of S&P, is under scrutiny for six deals graded in 2011. This investigation is part of a broader inquiry involving at least three government agencies examining S&P's practices in grading commercial mortgage-backed securities, which involve pooling loans on properties like shopping malls and hotels to create securities sold to investors.

What is the primary reason for the investigation by the New York State Attorney General into Standard & Poor's?

• To determine if S&P followed its own rating methodology.

• To evaluate S&P's employee satisfaction.

• To investigate tax evasion by S&P.

• To assess S&P's financial stability.

Which year are the deals under scrutiny by the New York State Attorney General?

• 2012

• 2011

• 2010

• 2013

What was the response of the S&P spokesman in New York regarding the investigation?

• He denied any wrongdoing.

• He declined to comment.

• He confirmed the allegations.

• He provided detailed comments.

What type of securities is S&P's business involved in grading, which is under investigation?

• Cryptocurrencies

• Government bonds

• Corporate stocks

• Commercial mortgage-backed securities

What types of properties are involved in the loans pooled by banks to create securities?

• Industrial warehouses

• Agricultural lands

• Shopping malls, hotels, and skyscrapers

• Residential homes