THE RE­CAP U.S. ac­cuses S&P of de­fraud­ing in­vestors

The Washington Post Sunday - - TAKING STOCK -

The Jus­tice De­part­ment ac­cused Stan­dard & Poor’s, the na­tion’s largest rat­ings agency, of de­lib­er­ately award­ing safe grades to toxic mort­gage se­cu­ri­ties so the com­pany could in­crease its prof­its. Government lawyers said S&P’s ac­tions in 2007 dur­ing the run-up to the fi­nan­cial cri­sis make it li­able for at least $5 bil­lion in dam­ages, mak­ing the case one of the high­est-pro­file at­tempts by the fed­eral government to pros­e­cute those re­spon­si­ble for the coun­try’s eco­nomic melt­down four years ago. A coali­tion of 14 states and the District of Columbia filed law­suits against S&P along­side the Jus­tice De­part­ment. The states in­clude Ari­zona, Cal­i­for­nia, Illi­nois, Iowa and Penn­syl­va­nia. S&P called the law­suits were “mer­it­less.”


Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.