U.S. securities regulators filed their first enforcement action tied to rosy credit ratings bestowed on thousands of mortgage-backed investments before the financial crisis erupted, accusing Mizuho Financial Group Inc. of rigging a 2007 bond deal. The Japanese bank allegedly used “dummy” assets to make sure it got a triple-A rating from Standard & Poor’s Ratings Services on a $1.6 billion deal called Delphinus CDO 2007-1….
The Delphinus action came a day before the five-year anniversary of the deal’s completion. As The Wall Street Journal reported this month, SEC officials are racing against the five-year statute of limitations on many federal securities laws as they pursue wrongdoing related to the financial crisis.
‘Enforcement 40’ for 2020
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