Moody’s, S&P face ‘consulting’ ban

WASHINGTON: The US Securities and Exchange Commission (SEC) may recommend this week that Moody���s Investors Service, Standard & Poor���s and Fitch Ratings be prohibited from advising investment banks on how to earn top rankings for asset-backed securities.

SEC staff may also propose at a June 11 meeting in Washington that the companies disclose all the data that goes into a rating so competitors can grade bonds even if they weren���t compensated by the underwriter, said the people, who declined to be identified because the rules aren���t final.