S&P pay $1.38b in US settlement

Written By Unknown on Rabu, 04 Februari 2015 | 00.00

STANDARD & Poor's is paying about $US1.38 billion ($A1.77 billion) to settle US government allegations that it knowingly inflated its ratings of risky mortgage investments that helped trigger the financial crisis.

THE McGraw Hill Financial subsidiary Standard & Poor's Financial Services LLC reached a settlement with the Justice Department over ratings issued from 2004 through 2007.

The settlement also resolves lawsuits filed by the attorneys general of 19 US states and the District of Columbia.The Justice Department filed civil fraud charges against S&P two years ago this week. It accused the company of failing to warn investors that the housing market was collapsing in 2006 because doing so would hurt its ratings business.S&P will also pay $US125 million in a separate settlement with the California Public Employees' Retirement System.


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