U.S. files massive fraud suit against S&P

02/5/2013 | Reuters · Financial Times (tiered subscription model)

Citing Standard & Poor's incentive to win business from investment banks, the U.S. Justice Department has filed a $5 billion fraud lawsuit against the ratings agency. The allegation is that S&P understated risks associated with mortgage-backed securities, whose collapse eventually led to the global economic meltdown. "Put simply, this alleged conduct is egregious -- and it goes to the very heart of the recent financial crisis," said Attorney General Eric Holder.

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Reuters · Financial Times (tiered subscription model)

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