Arab Today, arab today sp to pay 15bn to resolve financial crisis lawsuits
Last Updated : GMT 02:26:41
Arab Today, arab today
Arab Today, arab today

S&P to pay $1.5bn to resolve financial crisis lawsuits

Arab Today, arab today

Arab Today, arab today S&P to pay $1.5bn to resolve financial crisis lawsuits

US rating firm Standard & Poor
New York - AFP

Standard & Poor's, the world's leading credit rating agency, will pay $1.5 billion to settle US allegations of inflated ratings linked to the financial crisis that unleashed the Great Recession.
The settlement agreements announced Tuesday resolve civil lawsuits filed by the US Justice Department, 19 states, the US capital and the nation's largest pension fund.
S&P, a unit of McGraw Hill Financial, will pay $1.375 billion to resolve lawsuits accusing it of bilking investors by hiding the true risks of mortgage bonds linked to the financial crisis, the Justice Department.
Half will go to the Justice Department and the other half to the 19 states and Washington, DC.
Separately, S&P will pay $125 million to California state pension fund CalPERS to settle allegations of fraud that led to its investment losses.
The Justice Department and the states sued S&P two years ago for giving undeservedly rosy ratings to bonds that were backed by subprime mortgages, risky home loans that defaulted in droves as the housing price bubble collapsed.
The subprime crisis was at the center of the US financial meltdown that led to the 2008-2009 Great Recession.
According to the Justice Department suit, S&P's alleged fraud occurred from at least 2004 until 2007 and ultimately caused investors, including many financial institutions backed by the federal government, to lose billions of dollars.
S&P had claimed that its ratings were independent and not affected by its relationship with the companies hiring it to rate their securities.
But in a statement of facts as part of the settlement, S&P admitted that company executives had complained internally that it was not downgrading already-soured bonds because it was worried about losing some ratings business.
"The company's leadership ignored senior analysts who warned that the company had given top ratings to financial products that were failing to perform as advertised," said US Attorney General Eric Holder.
"While this strategy may have helped S&P avoid disappointing its clients, it did major harm to the larger economy, contributing to the worst financial crisis since the Great Depression."
- Retaliation claim dropped -
S&P acknowledged its fraudulent conduct with the ratings of the structured financial products, but it said it had not admitted to any legal violations.
"The settlement agreement states that all parties, including the company, the DOJ and the states, settled this matter 'to avoid the delay, uncertainty, inconvenience, and expense of further litigation,'" the company said.
It said agreeing to the payments was "in the best interests of the company and its shareholders."
S&P also agreed to formally retract an allegation that the US government sued the company in retaliation for its decision to strip the United States of its coveted AAA sovereign debt credit rating in 2011.  
In January, S&P agreed to pay $77 million to settle allegations from three US regulators, including the Securities and Exchange Commission, that it had overvalued 2011 mortgage bonds.
As part of that agreement, S&P was stripped of its authority to rate certain bond deals for one year.
CalPERS said that the $125 million settlement addresses losses on three S&P-rated structured investment vehicles that collapsed during the financial crisis.
CalPERS still has similar charges outstanding against S&P rival Moody's Investors Service.
Moody's is also under investigation for allegedly overvaluing bonds between 2007 and 2007 in the ongoing Justice Department probe of crisis-era failings, according to the Wall Street Journal.
Justice authorities and Moody's executives have been holding talks in recent months on the matter, the newspaper reported.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today sp to pay 15bn to resolve financial crisis lawsuits Arab Today, arab today sp to pay 15bn to resolve financial crisis lawsuits

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today sp to pay 15bn to resolve financial crisis lawsuits Arab Today, arab today sp to pay 15bn to resolve financial crisis lawsuits

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today US travel restrictions are still 'Muslim ban'

GMT 00:54 2017 Tuesday ,26 September

US travel restrictions are still 'Muslim ban'
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Israel builds settlements 'at high rate'

GMT 01:04 2017 Tuesday ,26 September

Israel builds settlements 'at high rate'
Arab Today, arab today North Korea 'more opaque'

GMT 10:50 2017 Sunday ,24 September

North Korea 'more opaque'
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Personality study finds fish have hidden depths

GMT 00:43 2017 Tuesday ,26 September

Personality study finds fish have hidden depths
Arab Today, arab today 'Lady Beast' fights for girl gamers

GMT 10:27 2017 Sunday ,24 September

'Lady Beast' fights for girl gamers
Arab Today, arab today Conditions growing dire    

GMT 09:22 2017 Monday ,25 September

Conditions growing dire    
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Chevrolet's first 9-speed auto debuts

GMT 18:58 2017 Monday ,25 September

Chevrolet's first 9-speed auto debuts
Arab Today, arab today Third generation adds more power

GMT 13:40 2017 Sunday ,24 September

Third generation adds more power
Arab Today, arab today Lebleba is preoccupied in filming 'Back Street'

GMT 08:56 2017 Thursday ,21 September

Lebleba is preoccupied in filming 'Back Street'
Arab Today, arab today Psychologists help Mexico deal

GMT 05:05 2017 Sunday ,24 September

Psychologists help Mexico deal

GMT 08:59 2017 Wednesday ,20 September

Youssra prepares for launching her program

GMT 10:16 2017 Friday ,22 September

All eyes on May as she prepares

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 20:10 2017 Saturday ,23 September

Big Western brands polluting oceans

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 12:02 2017 Sunday ,24 September

Harry visits mental health hospital

GMT 12:09 2017 Sunday ,24 September

Taxi! Transport gets an overhaul

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday