credit rating liability News

Government Suit Against S&P Could Embolden Other Investors to Sue

Lawyers for Standard and Poor’s, responding to a U.S. government probe, have tried for months to show it did nothing wrong in rating exotic securities in the run-up to the financial crisis. In one meeting, the McGraw-Hill Cos. Inc. unit, …

Government’s Case Against S&P: Ratings Stopped Making Sense

Barely two weeks after the big subprime lender New Century Financial Corp. went bankrupt, a top Standard & Poor’s executive assured Congress that her employer could be counted on to sound the alarm for the next credit disaster. S&P ratings …

Connecticut Urges Other States to Sue Credit Rating Agencies

Connecticut officials are encouraging other states to consider suing credit-rating agencies that gave high grades to risky mortgage-backed securities that plummeted in value when the housing market collapsed in 2007-2008. Connecticut Attorney General George Jepsen’s office on Wednesday briefed other …

Rating Agencies Win Dismissal of Ohio Funds Lawsuit

The three major credit-rating agencies won the dismissal of a lawsuit alleging that five Ohio pension funds lost hundreds of millions of dollars on risky mortgage debt because they relied on flawed ratings that made the debt appear safe. U.S. …

Republicans Target Dodd-Frank Reforms, Rating Firms’ Liability

Congressional Republicans on Wednesday will stage their first outright challenge to 2010′s Dodd-Frank financial regulation reforms with a fistful of bills favoring private equity firms, derivatives end-users and corporate CEOs. After months of trying to defund and defang Dodd-Frank at …