S&P Defends Practices In $1.5B Goldman, Citi MBS Debacle

Law360, New York (August 7, 2013, 9:27 PM EDT) -- Standard & Poor’s on Wednesday defended its handling of a $1.5 billion commercial mortgage-backed securities deal involving Goldman Sachs Inc. and Citigroup Inc., in response to a report that the U.S. Securities and Exchange Commission was investigating its actions.

S&P had agreed to evaluate a security Goldman Sachs and Citigroup had created with commercial real-estate loans, but withdrew its ratings at the last minute, citing newfound discrepancies in how its analysts rate deals.

S&P’s decision delayed the deal for weeks, creating ambiguity in the market. The...
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