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US Congress presses rating agencies on MF Global

Jan 06 2012 Sarah N. Lynch, Reuters

(Reuters) - Congressional investigators have launched an inquiry into the work of credit rating firms that examined MF Global Holdings Ltd's risky bets on European government bonds and whether they overlooked crucial information in their evaluations. Congressman Randy Neugebauer, who chairs an investigative panel of the House Financial Services Committee, sent letters to Moody's Corp Chief Executive Raymond McDaniel and Standard & Poor's Ratings Services President Douglas Peterson asking for detailed information about their procedures for determining MF Global's credit-worthiness. In letters dated Dec. 27, Neugebauer asked each of the rating agencies to respond to his inquiries into the matter by Jan. 15 and to turn over a lengthy list of documents concerning bankrupt futures brokerage MF Global. The subcommittee is also seeking to hold a hearing in the coming weeks on the role of the ratings firms in the MF Global mess, a source familiar with the matter said on Thursday.

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