Mon Feb 4, 2013, 03:44 PM
WillyT (68,565 posts)
S&P To Face Charges From States, U.S. Over Wrongdoing Before Financial Crisis - Reuters?huffPo
S&P To Face Charges From States, U.S. Over Wrongdoing Before Financial Crisis
Reporting by Jonathan Stempel in New York; Editing by Steve Orlofsky - Reuters/HuffPo
02/04/2013 2:18 pm EST
Feb 4 (Reuters) - Federal and state prosecutors intend to bring civil charges against Standard & Poor's for wrongdoing in its rating of mortgage bonds prior to the 2008 financial crisis, The Wall Street Journal said on Monday, citing people familiar with the matter.
Allegations against the McGraw-Hill Cos unit will center on the model used to rate the bonds and will be made in lawsuits to be filed as soon as this week, the newspaper said, citing the people.
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.
Several state attorneys general are expected to join the case, the newspaper said.
McGraw-Hill and the U.S. Department of Justice were not immediately available for comment.
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S&P To Face Charges From States, U.S. Over Wrongdoing Before Financial Crisis - Reuters?huffPo (Original post)
Response to WillyT (Original post)
Mon Feb 4, 2013, 04:18 PM
longship (28,994 posts)
1. Michael Lewis' "The Big Short" goes into this.
In fact, that book pretty much describes how the house of cards we call investment banks came crashing down.
Highly recommended read. It's not too techie, but relates the story through the eyes of a few characters who saw it would happen and bet against the field.
If you don't know the difference between a CDS and a CDO, this will clear it up.