U.S. plans to sue S&P over mortgage ratings
The Justice Department, along with a number of state prosecutors, plans to pursue charges against ratings agency Standard & Poor's (S&P) over what they say were the faulty ratings of mortgage bonds leading up to the 2008 financial crisis. The New York Times cited "people briefed on the plan" as sources for news of the civil suit. Via the Times:
Up until last last week, the Justice Department had been in settlement talks with S.&P., these people said. But the negotiations broke down after the Justice Department said it would seek a settlement in excess of “10 figures,” or at least $1 billion, these people said, which would wipe out the profits of S.&P.’s parent, the McGraw-Hill Company, for an entire year.