S&P willing to negotiate with DOJ over lawsuit

Standard & Poor's (NYSE:MHFI) is willing to reopen talks regarding its pending lawsuit with the Department of Justice over the inflated ratings it gave to shoddy mortgage bonds prior to the financial crisis, WSJ reports.

Those securities cost investors billions when they later soured. Previously, S&P tried to ignore the negotiation process, until the DOJ filed a lawsuit in February 2013. The ratings agency is now looking to settle for up to $1B.

Ratings agencies have remained largely unscathed by the litigation ensuing after the financial crisis. Most firms have argued that their ratings are independent opinions and statements of fact.

Comments (1)
  • 11146471
    , contributor
    Comments (1379) | Send Message
    Truly justifiable move by the DoJ!
    16 Jul 2014, 11:11 AM Reply Like
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