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Tue Feb 3, 2015, 12:09 PM

S&P paying $1.38B to settle charges over crisis-era ratings

Source: AP-Excite

By MARCY GORDON and ERIC TUCKER

WASHINGTON (AP) Standard & Poor's is paying about $1.38 billion to settle government allegations that it knowingly inflated its ratings of risky mortgage investments that helped trigger the financial crisis, the Justice Department announced Tuesday.

The settlement with the U.S. government, 19 states and the District of Columbia covers ratings issued from 2004 through 2007 by the McGraw-Hill subsidiary. It resolves a court fight that began with a government lawsuit two years ago and involved dozens of depositions and hundreds of millions of documents.

Under the agreement, S&P admitted that it issued and confirmed positive ratings despite knowing that those assessments were unjustified and in many cases based on packages of mortgages that it knew were likely to default.

"On more than one occasion, the company's leadership ignored senior analysts who warned that the company had given top ratings to financial products that were failing to perform as advertised," Attorney General Eric Holder said at a news conference Tuesday.

FULL story at link.


FILE - This Oct. 9, 2011, file photo shows 55 Water Street, home of Standard & Poor's, in New York. S&P is paying approximately $1.38 billion to settle government allegations that it knowingly inflated its ratings of risky mortgage investments which helped trigger the financial crisis. (AP Photo/Henny Ray Abrams, File)


Read more: http://apnews.excite.com/article/20150203/us-standard--poors-settlement-9cb61c22ff.html

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Reply S&P paying $1.38B to settle charges over crisis-era ratings (Original post)
Omaha Steve Feb 2015 OP
DesMoinesDem Feb 2015 #1
Munificence Feb 2015 #4
jtuck004 Feb 2015 #2
Ghost Dog Feb 2015 #3
BadGimp Feb 2015 #5

Response to Omaha Steve (Original post)

Tue Feb 3, 2015, 12:20 PM

1. Retaliation for downgrading US debt.

 

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Response to DesMoinesDem (Reply #1)

Tue Feb 3, 2015, 05:37 PM

4. BINGO!

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Response to Omaha Steve (Original post)

Tue Feb 3, 2015, 12:42 PM

2. 7 million foreclosures, 4 million during this administration, millions moved to poverty, trillions

 

of dollars up in smoke and billions out of the taxpayer's pockets into the banks, along with the death and disability that came with it.

Most of them have not been made whole, and many will live the rest of their lives in poverty, and if they have kids, the odds are really good they will too.

They might as well give them an award.

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Response to Omaha Steve (Original post)

Tue Feb 3, 2015, 04:46 PM

3. Why are criminal charges apparently not being brought

against these members of the "company's leadership" for blatant fraud?

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Response to Omaha Steve (Original post)

Tue Feb 3, 2015, 05:39 PM

5. My GOP friends still believe the borrowers caused the crash

here is irrefutable proof the the entire system was corrupt

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