DOJ readying to sue S&P over pre-crisis credit ratings
Standard & Poor’s said it expects to be the target of a U.S. Department of Justice civil lawsuit over its mortgage bond ratings, the first federal enforcement action against a credit rating agency over alleged illegal behavior tied to the recent financial crisis. …
It is unclear why regulators may be now focusing on S&P rather than Moody’s or Fimalac SA’s Fitch Ratings.
S&P, Moody’s and Fitch have long faced criticism from investors, politicians and regulators for assigning high ratings to thousands of subprime and other mortgage securities that quickly turned sour.
“This lawsuit is significant because it could augur future government action or, even worse for the agencies, more litigation by investors,” said Jeffrey Manns, a law professor at George Washington University in Washington, D.C. …
The New York Times reported that talks between the Justice Department and S&P broke down last week after the government sought a settlement of more than $1 billion.
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And yet, Jon Corzine skates off into the sunset…
changer1701 on February 5, 2013 at 9:45 AM
Why single out S&P? Because they hurt The Party.
We are seeing our country get destroyed. Are we going to just sit and watch it?!
Ghettos organized, why can’t you?
GardenGnome on February 5, 2013 at 9:46 AM
ROFL
In a month or so Bark is going to order food prices be frozen.
Bishop on February 5, 2013 at 9:49 AM
More thuggery and intimidation tactics. Did you expect anything less?
HarryBackside on February 5, 2013 at 9:58 AM
Why not sue Fitch for following EVERY SINGLE ratings decision S&P ever made? Oh yeah, because they had the (political) wisdom to stop short of downgrading our banana republic.
steebo77 on February 5, 2013 at 9:59 AM
Distraction.
Mimzey on February 5, 2013 at 10:06 AM
Total coincidence that the only rating agency to downgrade the United States creditworthiness is also the only one getting sued by the federal government.
Total coincidence!!
ButterflyDragon on February 5, 2013 at 10:23 AM
Justice must be getting analysis and recommendations from Obama’s embezzlement buddy Jon Corzine.
Methinks this has more to do with S&P’s down grade of Uncle Sam, than security ratings monkey business.
It could happen…
locomotivebreath1901 on February 5, 2013 at 10:29 AM
Not sure DOJ and Obama are thinking htis through. Maybe S&P could just downgrade the US a little further and really screw things up. That’s a mighty fine economy you have there – be a shame if something bad were to happen to it.
deadrody on February 5, 2013 at 10:32 AM
Not really. The Chicago Democratic Machine has taken over the Dem party.
Want to see the future of our country? Please see: Chicago, Illinois.
Forward!
visions on February 5, 2013 at 10:33 AM
Guilty, they sue, to deflect.
These are charlatanic thugs.
Schadenfreude on February 5, 2013 at 11:13 AM
This is years too late.
Sue all the ratings agencies for criminal fraud for not doing due diligence on the MBS.
Seven Seas on February 5, 2013 at 11:24 AM
Outstanding – the Regime shouting ‘SQUIRREL!’ again.
Dodd, Frank, Clinton, the CRA, the SEC, Fannie, Freddie…spread the lawsuit wealth DOJ. Actually add DOJ to that list of defendants.
CorporatePiggy on February 5, 2013 at 11:34 AM
I agree with some of the above. S&P should look at the unseriousness of the fools and thieves in govt and downgrade the feds. America will never resolve her debt. The fools and thieves are getting theirs before the whole ship swamps. To hell with them.
tom daschle concerned on February 5, 2013 at 12:27 PM