S&P Slammed by Wall Street Over Pulled Mortgage Ratings
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Wall Street banks including Morgan Stanley and Deutsche Bank AG slammed Standard & Poor’s decision to suspend ratings on commercial-mortgage bonds after finding a flaw in the review process.
S&P withdrew rankings it had assigned to a $1.5 billion offering from Goldman Sachs Group Inc. and Citigroup Inc., forcing the banks to scuttle the deal after it was placed with investors. It then yanked ratings on Freddie Mac’s $1.19 billion deal that JPMorgan Chase & Co. and Wells Fargo & Co. sold earlier this month that has yet to be completed.