Egan-Jones Ratings Co. was barred from grading government debt and asset-backed securities for 18 months after settling claims it made material misstatements to the U.S. Securities and Exchange Commission.
Credit rating companies are distorting capital markets by assigning the same debt ranking to countries from Italy to Thailand and Kazakhstan, according to BlackRock Inc., the world’s biggest money manager.
The first time I wrote about Sean Egan and his small, independent credit-research firm, Egan-Jones Ratings Co., was in December 2007 for a column about the bond insurer MBIA Inc. And man, did he nail it.
Egan-Jones Ratings Co. and its founder Sean Egan sued the U.S. Securities and Exchange Commission to force the agency to bring its allegations of misrepresentation against the firm before a federal judge.
Egan-Jones Ratings Co. and the firm’s owner and president, Sean Egan, were sued by the U.S. Securities and Exchange Commission, which claimed material misrepresentations and omissions in the company’s July 2008 application to register as a ratings organization.