Connecticut Attorney General Richard Blumenthal said Wednesday he is investigating New York-based Moody’s for “potential fraud” in connection with a possible “cover-up” of inaccurate ratings. U.S. Senator Charles Schumer urged regulators to examine the matter and fine the company if it delayed disclosing the mistake to investors.

Moody’s plunged US$6.99 — or 16 percent — to US$36.91 in composite trading on the New York Stock Exchange Wednesday, after the ratings company said it is conducting “a thorough review” of whether a computer glitch caused it to assign Aaa rankings to about US$4 billion of European securities that later fell in value.

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