DOJ Will Sue S&P Over Crisis-Era Ratings

Law360, New York (February 4, 2013, 4:23 PM EST) -- The U.S. Department of Justice intends to file civil claims against Standard & Poor’s Financial Services LLC over its credit ratings for doomed mortgage securities in 2007, the company said Monday, marking the first government suit over a credit rating firm's role in the financial crisis.

The DOJ’s civil division is preparing to file a lawsuit claiming that S&P, a unit of The McGraw-Hill Cos. Inc., gave toxic collateralized debt obligations inappropriately high ratings in 2007 as the U.S. housing market was collapsing. The DOJ will...
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