As observers call for a probe of insider trading from Standard & Poor’s decision to downgrade the U.S. credit rating, a little-known law from five years ago gives the Securities and Exchange Commission authority to do so. Regulatory observers are focusing, partly, on a heavy trading volume and a major sell off of equity securities at one point on Friday, responding to speculation rampant in the markets that S&P was going to downgrade the U.S. debt later that day.
Read more: Law from 2006 gives SEC scope to probe S&P — MarketWatch
