The Justice Department sued Standard & Poor’s Ratings Services late Monday, alleging the firm ignored its own standards to rate mortgage bonds that imploded in the financial crisis and cost investors billions.
The civil charges by U.S. Attorney General Eric Holder against the New York company, one of the bond-rating industry’s three giants, are the first federal enforcement action against a credit-rating firm over the crisis. Several state attorneys general are likely to join.
via U.S. Sues S&P Over Ratings – WSJ.com
