Search
 

Fed Files Charges Against S&P Over Mortgage-Backed Bonds

LOS ANGELES-The US Justice Department filed civil charges against Standard & Poor's on Monday alleging the credit rating firm gave inaccurate appraisals on mortgage-backed securities that fueled the national recession.

By John Jordan | Updated on February 05, 2013

LOS ANGELES-The US Justice Department filed civil charges against Standard & Poor’s on Monday alleging the credit rating firm gave inaccurate appraisals on mortgage-backed securities that fueled the national recession.

In the first enforcement action brought against a credit rating agency, the government charged that S&P misled investors by stating that its ratings were objective and “uninfluenced by any conflicts of interest.” It said S&P’s desire to make money and gain market share caused S&P to ignore risks posed by the investments between September 2004 and October 2007, according to published reports.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.