SEC weighing civil action over S&P CDO rating

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SEC weighing civil action over S&P CDO rating
LONDON (MarketWatch) -- McGraw-Hill Cos. said Monday that Securities and Exchange Commission staff are considering recommending the regulator institute a civil injunctive action, alleging violations of federal securities laws by the group's Standard & Poor's Ratings Services division. McGraw-Hill said it received a Wells Notice from the SEC relating to S&P's rating for a particular 2007 offering of collateralized debt obligations known as Delphinus CDO 2007-1. McGraw-Hill said commission staff may recommend that the regulator seek civil monetary penalties, disgorgement of fees "and other appropriate equitable relief." The Wells Notice, which is not a formal allegation, gives the company an opportunity to respond before the SEC makes any decision on enforcement proceedings.