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Wednesday, Sep 4
S&P accuses government of revenge for downgrade
- Standard & Poor's has accused the government of suing it for $5B in retaliation for the ratings agency downgrading the U.S.'s debt two years ago.
- The "allegation is preposterous," was the response of the Justice Department, which launched the lawsuit over S&P's ratings of mortgage bonds in the run-up to the financial crisis.
- The McGraw Hill (MHFI) unit made the accusation in a court filing yesterday, when it detailed 19 defenses to the DOJ's suit. One of them is that S&P wasn't the only one to not foresee the impending doom - Ben Bernanke and then-Treasury Secretary Henry Paulson didn't either. The same could be said for Moody's and Fitch, both of which haven't been sued.