S&P To Be Charged For Mortgage Bond Ratings Issued Before 2008 Financial Crisis: Report
February 5, 2013 5:51 AM EST
Standard & Poor's Ratings Services will be charged in federal and state courts for alleged wrongdoing in its ratings of mortgage bonds before the 2008 financial crisis, according to a report published Monday.
New York-based S&P, a unit of The McGraw-Hill Companies, Inc. (NYSE:MHP), and U.S. Justice Department officials have been negotiating a possible settlement, but those talks appear to have failed, the Wall Street Journal said.
S&P is one of the three major credit ratings agencies that gave high marks to complex mortgage-backed securities that fueled the housing boom of the early 200s. Those securities collapsed in the subprime mortgage crisis that, in turn, led to the 2009 recession.
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