"Justice Department Charges Standard & Poor's Defrauded Investors" PBS Newshour 2/5/2013
Excerpt
SUMMARY: The Department of Justice has filed a civil suit against Wall Street’s largest credit rating agency. Standard & Poor's is accused of knowingly committing fraud by issuing falsely inflated credit ratings between 2004 and 2007. The government estimates that S&P could be liable for $5 billion in damage if found guilty, in what is seen as the first major federal action against a credit rating agency in the wake of the 2008 financial crisis. Sixteen states and the District of Columbia have filed similar suits.
To examine both sides of the story, Jeffrey Brown was joined separately by Lisa Madigan, Attorney General of Illinois (one of the states filing a suit), and Floyd Abrams, an attorney representing Standard & Poor’s.
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