State D.A. Sues Standard & Poor's, Claiming Inflated Investment Ratings

By: Sylvia Ramirez - Tue, 05 Feb 2013 15:39:07 -0800

SAN FRANCISCO (BCN) --California's attorney general has filed a lawsuit against debt rating agency Standard & Poor's, claiming it inflated its ratings of certain investments, costing the state's public pension funds and other investors billions of dollars.

Attorney General Kamala Harris filed the lawsuit on Tuesday in San Francisco Superior Court.

It comes a day after the federal government filed a complaint against Standard & Poor's, accusing the company of fraud for giving high ratings to risky mortgage bonds that helped bring about the financial crisis.

It was the first enforcement action the federal government has taken against a major rating agency related to the financial crisis.

S&P, a unit of New York-based McGraw-Hill Cos., has denied wrongdoing in that case.

(Copyright 2013, Bay City News, All rights reserved.)
blog comments powered by Disqus