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.

Comments (2)
  • Andrew Noland
    , contributor
    Comments (131) | Send Message
    It's not preposterous. Over the last few years Govt has a very concerning track record of going after people / business it doesn't like.
    4 Sep 2013, 07:35 AM Reply Like
  • Bret Jensen
    , contributor
    Comments (15210) | Send Message
    Its the Chicago Way, baby.....that is why I made 300% on bull call spreads on Moody's (MCO) when this action was first announced. S&P was being targeted and Moody's kept their mouth shut and prospered. Not right, but that is this administration operates...
    4 Sep 2013, 07:51 AM Reply Like
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