SEC reviewing S&P handling on downgrade

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http://www.chicagotribune.com/business/sns-rt-us-sec-sp-reviewtre77f06k-20110815,0,3164117.story

Examiners at the Securities and Exchange Commission are checking to ensure that Standard & Poor's followed all of its policies leading up to its downgrade of long-term U.S. debt, according to people familiar with the matter.

Compliance, Inspections and Examinations is part of its new authority under the Dodd-Frank Wall Street overhaul law.

Among other things, the law gives the SEC the power to continuously monitor credit-rating agencies and conduct annual inspections at each firm.

(snip)
"It's a review, not an investigation," said one of the sources familiar with the mater, adding that the review was also focused on transparency of the process.