SEC Takes Action Against Egan-Jones

April 30, 2012 by · Leave a Comment
Filed under: Uncategorized 

The Security and Exchange Commission (SEC) alleges that the small rating agency, Egan-Jones, made material misstatements in a 2008 regulatory application.

An attorney for Egan-Jones, Alan Futerfas, said that the agency intends to contest the SEC’s administrative charges.

Reuters quotes Futerfas as saying, “I think this does a significant disservice to the investment community. I think it is grossly disproportional to any possible error in any four-year-old application. And we intend to vigorously contest these allegations.”

The specific charges include misrepresenting the firm’s rating experience, conflict-of-interest policy issues, and a failure to keep certain books and records.

Egan-Jones has been quick to downgrade sovereign debt among established countries, including the United States. “Has Egon-Jones been targeted? Let’s hope not.”

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