{"id":4093,"date":"2017-01-16T15:53:48","date_gmt":"2017-01-16T21:53:48","guid":{"rendered":"https:\/\/www.investorlawyers.com\/blog\/?p=4093"},"modified":"2022-03-22T15:06:09","modified_gmt":"2022-03-22T20:06:09","slug":"moodys-corp-settles-us-government-states-pre-crisis-mortgage-securities-ratings-almost-864m","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/moodys-corp-settles-us-government-states-pre-crisis-mortgage-securities-ratings-almost-864m\/","title":{"rendered":"Moody\u2019s Corp. Settles With US Government, States Over Pre-Crisis Mortgage Securities Ratings for Almost $864M"},"content":{"rendered":"<p>\t\t\t\tMoody\u2019s Corp. (MCO) will pay nearly $864M to settle allegations about the way that credit ratings agency rated high-risk mortgage securities, including residential mortgage-backed securities (RMBSs) and collateralized debt obligations (CDOs), leading up to the 2008 financial crisis. The settlement was reached between Moody\u2019s Corporation, Moody\u2019s Analytics Inc., and Moodys\u2019 Investors Services, and the US Department of Justice, the District of Columbia, and 21 US states. Moody\u2019s is accused of knowing that it was inflating the ratings of mortgage securities that were toxic.<\/p>\n<p>As part of the agreement, $437M will be paid as penalty to the DOJ. The rest of the $426.3M would be divided between DC and the states. Moody\u2019s consented to measures that would make sure of its credit ratings&#8217; integrity moving forward, and its chief executive will have to certify measures of compliance for a minimum of five years.<\/p>\n<p>Despite settling, Moody\u2019s maintains that its ratings pre-the 2008 crisis were valid. The credit rater also pointed out that this case has been resolved without any findings that it violated any laws. Moody&#8217;s is not admitting any liability. However, in a Statement of Facts, the company admitted to key parts of its purported behavior.<\/p>\n<p> <a href=\"https:\/\/www.investorlawyers.com\/blog\/moodys-corp-settles-us-government-states-pre-crisis-mortgage-securities-ratings-almost-864m\/#more-4093\" class=\"more-link\">Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Moody\u2019s Corp. (MCO) will pay nearly $864M to settle allegations about the way that credit ratings agency rated high-risk mortgage securities, including residential mortgage-backed securities (RMBSs) and collateralized debt obligations (CDOs), leading up to the 2008 financial crisis. The settlement was reached between Moody\u2019s Corporation, Moody\u2019s Analytics Inc., and Moodys\u2019 Investors Services, and the US [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3742,3753],"tags":[2689,2690,2650],"class_list":["post-4093","post","type-post","status-publish","format-standard","hentry","category-collateralized-debt-obligation","category-mortgage-backed-securities","tag-collateralized-debt-obligations","tag-moodys","tag-residential-mortgage-backed-securities"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Moody\u2019s Corp. Settles With US Government, States Over Pre-Crisis Mortgage Securities Ratings for Almost $864M &#8212; Investor Lawyers Blog &#8212; January 16, 2017<\/title>\n<meta name=\"description\" content=\"Moody\u2019s Corp. (MCO) will pay nearly $864M to settle allegations about the way that credit ratings agency rated high-risk mortgage securities, including &#8212; January 16, 2017\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/moodys-corp-settles-us-government-states-pre-crisis-mortgage-securities-ratings-almost-864m\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Moody\u2019s Corp. Settles With US Government, States Over Pre-Crisis Mortgage Securities Ratings for Almost $864M &#8212; Investor Lawyers Blog &#8212; January 16, 2017\" \/>\n<meta name=\"twitter:description\" content=\"Moody\u2019s Corp. (MCO) will pay nearly $864M to settle allegations about the way that credit ratings agency rated high-risk mortgage securities, including &#8212; January 16, 2017\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Moody\u2019s Corp. Settles With US Government, States Over Pre-Crisis Mortgage Securities Ratings for Almost $864M &#8212; Investor Lawyers Blog &#8212; January 16, 2017","description":"Moody\u2019s Corp. (MCO) will pay nearly $864M to settle allegations about the way that credit ratings agency rated high-risk mortgage securities, including &#8212; January 16, 2017","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.investorlawyers.com\/blog\/moodys-corp-settles-us-government-states-pre-crisis-mortgage-securities-ratings-almost-864m\/","twitter_card":"summary_large_image","twitter_title":"Moody\u2019s Corp. Settles With US Government, States Over Pre-Crisis Mortgage Securities Ratings for Almost $864M &#8212; Investor Lawyers Blog &#8212; January 16, 2017","twitter_description":"Moody\u2019s Corp. (MCO) will pay nearly $864M to settle allegations about the way that credit ratings agency rated high-risk mortgage securities, including &#8212; January 16, 2017","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/moodys-corp-settles-us-government-states-pre-crisis-mortgage-securities-ratings-almost-864m\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/moodys-corp-settles-us-government-states-pre-crisis-mortgage-securities-ratings-almost-864m\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"Moody\u2019s Corp. Settles With US Government, States Over Pre-Crisis Mortgage Securities Ratings for Almost $864M","datePublished":"2017-01-16T21:53:48+00:00","dateModified":"2022-03-22T20:06:09+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/moodys-corp-settles-us-government-states-pre-crisis-mortgage-securities-ratings-almost-864m\/"},"wordCount":372,"keywords":["collateralized debt obligations","Moody's","residential mortgage-backed securities"],"articleSection":["Collateralized Debt Obligations","Mortgage Backed Securities"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/moodys-corp-settles-us-government-states-pre-crisis-mortgage-securities-ratings-almost-864m\/","url":"https:\/\/www.investorlawyers.com\/blog\/moodys-corp-settles-us-government-states-pre-crisis-mortgage-securities-ratings-almost-864m\/","name":"Moody\u2019s Corp. Settles With US Government, States Over Pre-Crisis Mortgage Securities Ratings for Almost $864M &#8212; Investor Lawyers Blog &#8212; January 16, 2017","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#website"},"datePublished":"2017-01-16T21:53:48+00:00","dateModified":"2022-03-22T20:06:09+00:00","author":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"description":"Moody\u2019s Corp. (MCO) will pay nearly $864M to settle allegations about the way that credit ratings agency rated high-risk mortgage securities, including &#8212; January 16, 2017","breadcrumb":{"@id":"https:\/\/www.investorlawyers.com\/blog\/moodys-corp-settles-us-government-states-pre-crisis-mortgage-securities-ratings-almost-864m\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.investorlawyers.com\/blog\/moodys-corp-settles-us-government-states-pre-crisis-mortgage-securities-ratings-almost-864m\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.investorlawyers.com\/blog\/moodys-corp-settles-us-government-states-pre-crisis-mortgage-securities-ratings-almost-864m\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.investorlawyers.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Moody\u2019s Corp. Settles With US Government, States Over Pre-Crisis Mortgage Securities Ratings for Almost $864M"}]},{"@type":"WebSite","@id":"https:\/\/www.investorlawyers.com\/blog\/#website","url":"https:\/\/www.investorlawyers.com\/blog\/","name":"Investor Lawyers Blog","description":"Published By Investment Fraud Attorneys \u2014 Shepherd Smith Edwards &amp; Kantas, LLP","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.investorlawyers.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431","name":"Shepherd Smith Edwards &amp; Kantas, LLP","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/c7f8f04990816cd4044977eb59908da8c8d1ae487cc919cebd7027b74a0740a3?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/c7f8f04990816cd4044977eb59908da8c8d1ae487cc919cebd7027b74a0740a3?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/c7f8f04990816cd4044977eb59908da8c8d1ae487cc919cebd7027b74a0740a3?s=96&d=mm&r=g","caption":"Shepherd Smith Edwards &amp; Kantas, LLP"},"sameAs":["https:\/\/www.investorlawyers.com\/"]}]}},"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/pedX9K-141","_links":{"self":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts\/4093","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/comments?post=4093"}],"version-history":[{"count":1,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts\/4093\/revisions"}],"predecessor-version":[{"id":25073,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts\/4093\/revisions\/25073"}],"wp:attachment":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/media?parent=4093"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/categories?post=4093"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/tags?post=4093"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}