Mizuho Pays $128M To End Claims It Inflated CDO Rating

Law360, New York (July 18, 2012, 8:21 PM EDT) -- Japan-based Mizuho Financial Group Inc.'s U.S. investment banking unit on Wednesday agreed to pay $127.5 million to settle U.S. Securities and Exchange Commission claims that the unit and three former employees artificially boosted the credit rating of a collateralized debt obligation it marketed backed by subprime loans.

Mizuho Securities USA agreed to the settlement on the same day the SEC filed the complaint in New York federal court, which claimed the firm misled investors about the risk level of the CDO, racking up roughly $10 million...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.