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S&P reaches $1.5 billion deal with U.S., states over crisis-era ratings
Source: Reuters
S&P reaches $1.5 billion deal with U.S., states over crisis-era ratings
BY ARUNA VISWANATHA AND KAREN FREIFELD
Tue Feb 3, 2015 1:46pm EST
(Reuters) - Credit rating firm Standard & Poor's will pay $1.5 billion to resolve a collection of lawsuits over its ratings on mortgage securities that soured in the run-up to the 2008 financial crisis, concluding one of the U.S. government's most ambitious cases tied to the housing collapse.
The settlement comes after more than two years of litigation as S&P tried to beat back allegations that it issued overly rosy ratings in order to win more business.
S&P parent McGraw Hill Financial Inc (MHFI.N) said it will pay $687.5 million to the U.S. Department of Justice, and $687.5 million to 19 states and the District of Columbia, which had filed similar lawsuits over the ratings.
Late Monday, the firm reached a separate $125 million settlement with public pension fund California Public Employees’ Retirement System, which had sued S&P in 2009, claiming its inaccurate ratings caused the firm hundreds of millions of dollars in losses.
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BY ARUNA VISWANATHA AND KAREN FREIFELD
Tue Feb 3, 2015 1:46pm EST
(Reuters) - Credit rating firm Standard & Poor's will pay $1.5 billion to resolve a collection of lawsuits over its ratings on mortgage securities that soured in the run-up to the 2008 financial crisis, concluding one of the U.S. government's most ambitious cases tied to the housing collapse.
The settlement comes after more than two years of litigation as S&P tried to beat back allegations that it issued overly rosy ratings in order to win more business.
S&P parent McGraw Hill Financial Inc (MHFI.N) said it will pay $687.5 million to the U.S. Department of Justice, and $687.5 million to 19 states and the District of Columbia, which had filed similar lawsuits over the ratings.
Late Monday, the firm reached a separate $125 million settlement with public pension fund California Public Employees’ Retirement System, which had sued S&P in 2009, claiming its inaccurate ratings caused the firm hundreds of millions of dollars in losses.
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Read more: http://www.reuters.com/article/2015/02/03/us-s-p-settlement-idUSKBN0L71C120150203
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