Wed, Jan. 28, 3:12 PM
- An agreement isn't yet final, but McGraw Hill Financial's (MHFI -1.8%) S&P as early as tomorrow could strike a deal to pay $1.37B to the DOJ and 12 states to settle charges it knowingly inflated ratings on MBS prior to the financial crisis.
- The settlement would be the largest amount paid by a ratings agency, the group of which has gotten away relatively unscathed (legally speaking) from its actions leading up to the financial crisis.
- Last week S&P settled with the SEC over actions from well after the bust-up.
Fri, Jan. 23, 3:53 PM
- “The ban is more of a reputational hit than an economic one,” says an asset manager. "The impact will be relatively constrained to nonexistent.”
- The SEC earlier this week suspended S&P (MHFI +0.2%) for one year from rating CMBS backed by multiple borrowers as part of a penalty over claims it bent ratings criteria to win business. S&P, however, only rated 9% of those deals last year, according to Commercial Mortgage Alert. in contrast, the company rated 82% of all offering tied to single borrowers - and it's not banned from that business.
- Previously: S&P to pay $58M, take "time-out" in SEC settlement (Jan. 21)
Wed, Jan. 21, 9:29 AM
- McGraw Hill Financial (NYSE:MHFI) unit Standard & Poor's settles with the SEC over charges it fudged rating criteria in 2011 to try and win more business.
- S&P will pay a total of $58M in fines and take a one year "time-out" from making ratings on any new U.S. conduit/fusion CMBS.
- S&P also agrees to pay $19M to New York and Massachusetts to settle investigations by those states.
- Previously: Bloomberg: S&P faces suspension from CMBS ratings (Jan. 20)
Tue, Jan. 20, 2:58 PM
- As part of a $60M settlement with the SEC, McGraw Hill Financial (MHFI -0.2%) unit Standard & Poor's will be suspended for a year from rating securities in the largest piece of the CMBS market, according to Bloomberg's source.
- The SEC has been probing S&P over whether it bent criteria in order to win business in 2011. In addition to SEC penalties, S&P is facing sanctions/fines over investigations by the states of New York and Massachusetts.
Tue, Jan. 13, 3:26 AM
- Standard & Poor’s (NYSE:MHFI) is nearing a $1B settlement with the DOJ over the inflated ratings it gave to shoddy mortgage bonds prior to 2008, and may agree to settle the case as early as this quarter, Bloomberg reports.
- Ratings agencies have remained largely unscathed by the litigation ensuing after the financial crisis, although the Justice Department has secured settlements worth tens of billions of dollars during the past two years from mortgage lenders and banks.
Dec. 26, 2014, 1:40 AM
- S&P (NYSE:MHFI) is nearing a joint settlement with the SEC, NY AG Eric Schneiderman and Massachusetts AG Martha Coakley over their investigation of how the company graded its commercial mortgage-backed securities in 2011.
- Besides a potential suspension, S&P is expected to receive a fine of at least $60M.
- The case is separate from the DOJ's $5B lawsuit filed in February 2013, which accused the agency of inflating ratings before the financial crisis.
Dec. 12, 2014, 12:49 PM
- In a deal valued at nearly $2B, Hearst Corporation will purchase another 30% interest in Fitch Group from Fimalac, which will retain a 20% interest in the ratings agency.
- Hearst CEO Steven Swartz: "Strategically, Hearst continues to diversify into data and information-based companies while growing its world-class media assets."
- McGraw Hill Financial (MHFI -1.3%) remains lower on the session, but has perked up since the news hit. Moody's (MCO -1.7%) has added a bit as well, though the reaction is more subdued.
- Source: Press Release
Dec. 8, 2014, 4:29 PM
- At issue are SEC charges S&P (MHFI -2%) bent rating criteria in 2011 in order to win business, and - if you believe stories the stories about Tim Geithner's fury - S&P's decision to downgrade the U.S. credit rating.
- S&P parent McGraw Hill Financial and the SEC have been in settlement talks for some time, with the SEC, reports Bloomberg, wanting the suspension as part of a deal.
- S&P is also facing a separate $5B suit filed by the DOJ over its inflating of ratings on residential mortgages.
- Shares are lower by 0.4% after-hours, following the sizable drop on the news late in the regular session.
Nov. 25, 2014, 2:46 PM
- "Not surprisingly, billionaires reduced their energy allocations (NYSEARCA:XLE) during Q3," says Direxion, unveiling the quarterly rebalance for the iBillionaire Index (which serves as the benchmark for the IBLN ETF). Attention was instead shifted to healthcare (NYSEARCA:XLV) and materials (NYSEARCA:XLB), with companies like Humana (NYSE:HUM) and Monsanto (NYSE:MON).
- Also added to the index: TMO, GM, FB, CBS, GOOG, MAS, APD, DAL, NOV, WHR, THC, ABBV.
- Dropped from the index: AIG, MCK, CTSH, MSI, RIG, CI, APC, GPS, MSFT, CMCSA, NFLX, MHFI, WMB, ICE.
- Outlying sectors: Consumer Discretionary (NYSEARCA:XLY) makes up 23.33% of the iBillionaire Index vs. 11.68% for the S&P 500, and Industrials (NYSEARCA:XLI) and financials (NYSEARCA:XLF) make up just 6.67% each of the index vs. 10.44 and 16.30 of the S&P 500, respectively. Consumer Staples (NYSEARCA:XLP) have zero representation in the index vs. 9.7% in the S&P 500.
- Previously: Direxion launched an ETF with iBillionaire today
Oct. 29, 2014, 9:44 AM
- Adjusted net income from continuing operations of $281M up 31% Y/Y; EPS of $1.02 up 32%.
- With the agreement to sell the Construction business, that units results have now been moved to discontinued operations. Accordingly, full year EPS guidance is cut to $3.78-$3.83 from $3.80-$3.90.
- Although no definitive settlement has been reached, McGraw Hill (MHFI +1.7%) takes a $60M charge over a regulatory investigation into ratings issued by S&P on six commercial real estate deals.
- Operations: S&P ratings services revenue of $604M up 12% Y/Y. Transaction revenue of $269M up 18%. Non-transaction revenue up 7%. S&P Capital IQ revenue of $311M up 6%. S&P Dow Jones Indices revenue of $143M up 15%. Commodities and Commercial Markets revenue of $227M up 7%.
- $607M of buybacks YTD; another 45.6M shares remain under authorization.
- Previously: McGraw-Hill Companies beats by $0.08, misses on revenue
Oct. 29, 2014, 7:17 AM| Comment!
Oct. 28, 2014, 5:30 PM
- ACCO, ADP, AIT, ALKS, ALLY, AMED, ARW, AUO, AVX, BAH, BDC, CCJ, CFR, CKSW, CMC, COT, CTCM, DXYN, ETN, EVER, EXC, GHM, GRMN, GT, H, HES, HSY, IACI, ISSI, JLL, LFUS, MHFI, MRGE, MTH, NVMI, OMG, PAG, PB, PSX, PSXP, PX, RES, RL, ROL, RYAM, SEE, SKYW, SO, SODA, SPW, SPWR, STM, TEL, TFX, UAM, UBSI, VLY, WEC, WLP, WM, XRAY
Oct. 23, 2014, 7:32 PM
Oct. 3, 2014, 3:31 PM
- At issue, according to a Bloomberg story, is the idea McGraw Hill Financial's (MHFI -0.3%) S&P unit - looking to win more bank business - failed to follow its own methodology in rating commercial-mortgage bond deals.
- Under investigation are six CMBS deals graded in 2011.
- The move by NY AG Eric Schneiderman makes his office at least the third to probe this matter (along with the SEC and the Massachusetts AG).
- S&P is also facing a separate $5B DOJ lawsuit for inflating ratings on RMBS, thus helping to precipitate the financial crisis.
Sep. 23, 2014, 2:31 AM
- McGraw Hill Financial (NYSE:MHFI) is selling McGraw Hill Construction to P-E firm Symphony Technology for $320M.
- CEO Douglas Peterson says the deal completes the company's reorganization plans to improve efficiency, after previously stating that the unit did not fit into the global reach of the rest of the portfolio.
- The transaction is expected to close in Q4.
- Previously: McGraw Hill Financial mulls strategic alternatives for McGraw Hill Construction
Sep. 10, 2014, 5:16 AM
- Standard & Poor's (NYSE:MHFI) and Markit (NASDAQ:MRKT) have been narrowed down as the final bidders for Barclays' (NYSE:BCS) index business, which could go for more than $1B. Sources tell Reuters that a winner can be announced within weeks.
- Barclays launched the auction of its Index, Portfolio and Risk Solutions business this summer, which contains a basket of more than 98 major indexes, including the well-known U.S. Aggregate Bond Index.
- Previously: Bloomberg, Markit eyeing Barclays' fixed-income index unit
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