Moody's, S&P Must Disclose Internal MBS Reviews

Law360, New York (June 27, 2011, 5:10 PM EDT) -- A New York state judge on Monday ordered Standard & Poor's Financial Services LLC and Moody's Corp. to hand over internal analyses of bundled Countrywide Financial Corp. mortgages that later defaulted en masse and crippled monoline insurer MBIA Inc.

New York Supreme Court Judge Eileen Bransten ruled that the state's broad discovery rules mandated that the rating agencies must disclose internal documents that show how they used mortgage loan information given by Countrywide to analyze and give nonpublic shadow ratings to securities that MBIA ultimately insured....
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