Feds to sue S&P over mortgage bond ratingsSubmitted by NewtLobbyrich on Mon, 02/04/2013 - 16:22
Federal prosecutors intend to bring civil charges against Standard & Poor's for wrongdoing in its rating of mortgage bonds prior to the 2008 financial crisis.
Allegations against the McGraw-Hill unit will center on the model used to rate the bonds and will reportedly be made in lawsuits to be filed as soon as this week.
A move by U.S. officials would be the first federal enforcement action against a major credit rating agency over alleged illegal behavior tied to the financial crisis.
The lawsuit is reportedly regarding 30 triple-A rated CDOs from the first half of 2007, and the Department of Justice is seeking "a 10 figure plus settlement and the admission of wrongdoing," according to sources.