Drop Down MenusCSS Drop Down MenuPure CSS Dropdown Menu
Alternative Text Alternative Text Alternative Text Alternative Text
Survivor of US Drone Attack:
Obama Belongs on List of World's Tyrants

Poisoning Black Cities: Corporate Campaign to Ethnically Cleanse US Cities Massive Marches in Poland
Against Authoritarian Threat of Far-Right
Ethiopia’s Invisible Crisis: Land Rights Activists Kidnapped and Tortured

Global Perspectives Now Global Perspectives Now

Top Ratings Company That Gave Bogus Mortgage Securities Triple-A Ratings Given 'Get Out of Jail Card' for $1.5 Billion Payoff

Standard & Poor's  claimed that their defrauding of pension funds was "legal" because their lies about the "high quality" of toxic mortgage securities was "free speech." The ratings corporation also claimed the Justice Department sued them to revenge the downgrading of the United States' credit rating.

Apparently you can package garbage as securities and those securities can get high ratings from S&P — If you know the right people.
Apparently you can package garbage as securities and those securities can get high ratings from S&P — If you know
the right people.

S&P reaches $1.5 billion deal with U.S., states over crisis-era ratings

By Aruna Viswanatha and Karen Freifeld
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.

The United States sued S&P in 2013 after initial settlement talks broke down, seeking $5 billion and accusing the ratings agency of defrauding investors. S&P argued that its ratings were protected under the First Amendment right to free speech, and described the lawsuit as retaliation for the firm downgrading the credit rating of the United States.

Under the settlement, S&P acknowledged it has not uncovered evidence to support the allegations of retaliation. "This was important to me," Attorney General Eric Holder said, referring to the allegation as "utter nonsense."

Read More

No comments:

Related Posts Plugin for WordPress, Blogger...