Congress Investigates Role of S&P, Moody’s in MF Global Failure

U.S. lawmakers are investigating whether Standard & Poor’s and Moody’s Investors Service failed to provide accurate ratings of MF Global Holdings Ltd. as the brokerage spiraled into bankruptcy.

Representative Randy Neugebauer, a Texas Republican, sent letters on Dec. 27 to Douglas Peterson, S&P president, and Raymond McDaniel, Moody’s chief executive officer, asking what the credit-rating companies knew about the bet on European sovereign debt that led to the brokerage’s failure.