Why the SEC Has a Problem With Standard & Poor's

The SEC is considering suspending SNP from rating commercial mortgage bonds, marking a significant action against a major credit rater. SNP's parent company, McGraw Hill Financial, is negotiating a settlement with the SEC, which is investigating potential misconduct in rating criteria from 2011. Both McGraw Hill and the SEC have declined to comment. The news has negatively impacted McGraw Hill's shares, and there is anticipation of repercussions for rating agencies criticized for their role in the financial crisis.

What significant action is the SEC considering against SNP?

• Merging SNP with another credit rater

• Suspending SNP from rating commercial mortgage bonds

• Promoting SNP to a higher rating category

• Fining SNP for inaccurate ratings

What is the main focus of the SEC's investigation into McGraw Hill Financial?

• Insider trading activities

• Alleged manipulation of rating criteria to win business

• Tax evasion practices

• Unethical employee conduct

What has been the response of McGraw Hill and the SEC to the ongoing investigation?

• Both have denied any wrongdoing

• Both have confirmed the allegations

• Both have issued public apologies

• Both have declined to comment

How has the news of the SEC's potential action affected McGraw Hill's shares?

• The shares have fallen

• The shares have risen

• The shares have been suspended

• The shares have remained stable

What criticism have rating agencies faced in relation to financial crises?

• Supporting small businesses

• Preventing financial growth

• Fueling financial crises

• Promoting economic stability