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Friday, January 20, 2012

Italy Probe On S&P Includes Latest Downgrade

Prosecutors examining possible insider trading are looking into whether information was passed on before ratings agency Standard and Poor's downgraded Italy last week, according to a report.

Italian prosecutors have been investigating the impact of S&P's reports on the country's share prices, following complaints from consumer groups.

The ongoing probe is looking into whether crimes of market manipulation and illicit use of privileged information were committed when S&P's reports were released in May, June and July 2011, prompting a sell-off of Italian assets.

Now, prosecutors are said to be looking at the latest S&P downgrade of Italy, and whether it was leaked to various individuals before it was made official.

One Italian report has even claimed there is a possibility the data used to make the downgrade was "biased and incorrect".

If that is proved to be true, it would put into doubt the whole aspect of the downgrade. Read More