S.&P. Downgrades China’s Credit Rating
Standard & Poor’s move, which cut China’s sovereign rating to A+ from AA-, was its first reduction in the rating since 1999. The outlook on China was changed to stable from negative.
“China’s prolonged period of strong credit growth has increased its economic and financial risks,” S.&P. said. “Although this credit growth had contributed to strong real G.D.P. growth and higher asset prices, we believe it has also diminished financial stability to some extent.”
Moody’s had cut China’s credit rating in May.
The S.E.C. Was Hacked
Hackers penetrated the Securities and Exchange Commission’s electronic system for storing public company filings and may have traded on them.
The commission said the hack was detected in 2016, but that regulators didn’t learn about the possibility of related illicit trading until August, when they started an investigation and began cooperating with what the S.E.C. called “appropriate authorities.”
From the S.E.C. statement:
Specifically, a software vulnerability in the test filing component of the commission’s Edgar system, which was patched promptly after discovery, was exploited and resulted in access to nonpublic information. It is believed the intrusion did not result in unauthorized access to personally identifiable information, jeopardize the operations of the commission, or result in systemic risk.
The disclosure, coming on the heels of a data breach at Equifax, the major consumer credit reporting firm, will likely intensify concerns over potential computer vulnerabilities lurking among pillars of the American financial system.
On that note …
• Someone made a fake Equifax site. Then Equifax linked to it.
• If you were expecting some type of criminal prosecution or regulatory penalty for Equifax, you may be disappointed, DealBook’s Peter J. Henning writes.
Preet Bharara Is Back
“So, as you may have read, I was fired by the president of the United States.”
That’s Preet Bharara, the newly minted podcast host, on the first episode of…