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

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

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Business, Social Studies

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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.

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5 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

Who is investigating Standard and Poor's according to the text?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

What is the purpose of the investigation into Standard and Poor's?

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3.

OPEN ENDED QUESTION

3 mins • 1 pt

What specific methodology is being questioned in the investigation?

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4.

OPEN ENDED QUESTION

3 mins • 1 pt

How many government agencies are investigating Standard and Poor's business according to the text?

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5.

OPEN ENDED QUESTION

3 mins • 1 pt

What types of properties were involved in the commercial mortgage backed securities mentioned?

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