DOJ Slams S&P Bid To Toss Inflated RMBS Ratings Suit

Law360, New York (May 21, 2013, 5:19 PM EDT) -- The U.S. Department of Justice on Monday hit back at Standard & Poor's Financial Services LLC’s bid to dismiss a suit over allegedly flawed residential mortgage-backed securities ratings issued before the financial crisis, telling a California federal judge it had properly alleged fraud by the ratings firm.

According to the DOJ, S&P had wrongly tried to discount the government’s allegations over previous repeated assurances about the legitimacy of its ratings by disavowing the statements as vague, generalized “puffery,” immaterial to investors in the RMBS or related...
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