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News - Spitzer inquiry widens to Moody's.

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| September 01, 2005 | COPYRIGHT 2005 Financial Times Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

(From Reinsurance)

New York Attorney General Eliot Spitzer has subpoenaed Moody's for information on how it rates reinsurers and mortgage securities, broadening his probe of Wall Street practices.

In its quarterly report filed with securities regulators, Moody's said it received a subpoena on July 13 for documents regarding its financial strength and subordinated debt ratings for reinsurers since 1 January 1997.

Moody's also said that second-quarter profit jumped 40% on strong demand for ratings, especially in residential mortgage-backed and home-equity securities.

It said ...

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