Seeking Alpha

Appeals court rejects S&P, Moody's request to dismiss ratings lawsuit

  • McGraw Hill (MHFI) unit S&P and Moody's (MCO) must face a lawsuit from Calpers over ratings they gave on investments that led to losses of $800M.
  • An appeals court affirmed a lower-court ruling from 2012 to reject the firms' request to dismiss the case.
  • Calpers sued the agencies in 2009 after the collapse of three investment vehicles that were supported by sub-prime mortgages. The pension system had invested $1.3B.
  • S&P is the subject of similar lawsuits from the Justice Department and individual states, including California.
Comments (2)
  • Scooter-Pop
    , contributor
    Comments (2574) | Send Message
     
    The Rating Agencies should have been named in the famous Jim Cramer rant heard round the world.
    25 May 2014, 06:07 AM Reply Like
  • You wouldnt guess
    , contributor
    Comments (34) | Send Message
     
    Ratings. Self referential markings, tautologies that in essence mean nothing outside of their circular domain.

     

    Yet ratings are also the only proper way to describe any statement of creditworthiness.
    26 May 2014, 02:55 PM Reply Like
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