SEC Probing S&P Downgrade

But analysts say proving insider trading violations would be difficult
By Mark Russell,  Newser Staff
Posted Aug 12, 2011 9:38 AM CDT
SEC Probing S&P Downgrade
The Securities and Exchange Commission has started preliminary investigations into S&P over possible insider trading violations surrounding last week's downgrade of the United States' sovereign credit rating.   (SEC website)

The SEC wants to know who knew about S&P's decision to downgrade the United States credit rating before it happened, as part of a very initial look at whether insider trading violations occurred, reports the Financial Times. Those involved in the case say the investigation isn't based on any evidence of insider trading or aberrational trades. And with so many people anticipating a downgrade in the days leading up to S&P's move, analysts say proving insider training could be quite difficult. The Senate banking committee is also looking into the downgrade. (More SEC stories.)

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