Conn. AG Probes $400M 'Reward' To Rating Agencies

Law360, New York (April 6, 2009, 12:00 AM EDT) -- Connecticut's attorney general has come out swinging against the U.S. government's anticipated $1 trillion lending initiative, launching a probe into why the program allegedly steers up to $400 million to the Big Three credit agencies he says helped create the economic meltdown by overrating risky securities.

The program, known as the Term Asset-Backed Securities Loan Facility, “undermines recent federal legislation explicitly aimed at encouraging competition in the credit rating business by breaking the Big Three's long-standing stranglehold on the market,” Connecticut Attorney General Richard Blumenthal said...
To view the full article, register now.