Details Emerge on DOJ Lawsuit Against S&P Over RMBS Ratings

Posted To: MND NewsWireThe Department of Justice (DOJ) has released details of the suit it has filed against Standard and Poors (S&P) Ratings Services and its parent company McGraw Hill. The lawsuit alleges that investors, many of them federally insured financial institutions, lost billions of dollars on residential mortgage-backed securities (RMBS) and collateralized debt obligations (CDO) for which S&P provided inflated ratings misrepresenting the securities credit risks. DOJ maintains that S&P represented its rates as objective and independent when "S&P was so concerned with the possibility of losing market share and profits that it limited, adjusted and delayed updates to the ratings criteria and analytical models it used to assess the credit risks posed by RMBS and CDOs." DOJ says that S&P...(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.http://www.mortgagenewsdaily.com/02052013_mortgage_fraud_bond_ratings.asp @ uwad.com