S&P, Moody's Hit With Class Action Over RMBS Ratings

Law360, Los Angeles (July 3, 2013, 8:23 PM EDT) -- The First National Bank and Trust Co. of Rochelle, Illinois, hit McGraw-Hill Companies Inc., McGraw business unit Standard & Poor’s Ratings Services and Moody’s Corp. with a putative class action in state court, saying the credit rating agencies issued inflated ratings on residential mortgage-backed securities.

The July 3 action raises allegations that the S&P and Moody’s companies knowingly or recklessly issued inflated ratings on RMBS and then failed to correct those ratings when the residential mortgage loans underpinning the RMBS experienced delinquencies and defaults in far...
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