{"id":5448,"date":"2013-05-09T00:00:00","date_gmt":"2013-05-09T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2013\/05\/standard_poors_seeks_dismissal"},"modified":"2022-05-04T13:42:52","modified_gmt":"2022-05-04T18:42:52","slug":"standard-poors-seeks-dismissal","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/standard-poors-seeks-dismissal\/","title":{"rendered":"Standard & Poor\u2019s Seeks Dismissal of DOJ Securities Fraud Lawsuit Over RMBS and CDO Ratings Issued During the Financial Crisis"},"content":{"rendered":"

In the U.S. District Court for the Central District of California, Standard & Poor’s Financial Services LLC is asking for the dismissal of a US Department of Justice securities fraud lawsuit accusing the ratings firm of knowing that it was issuing faulty ratings to collateralized debt obligations and residential mortgage-backed securities during the financial crisis. S & P is contending that the claims are against judicial precedent and don\u2019t establish wrongdoing.<\/p>\n

The government sued the credit rating giant and its parent company McGraw-Hill Companies Inc. (MHP) earlier this year. It claims that S & P took part in a scheme to bilk investors by wrongly representing that its ratings for collateralized debt obligations and residential mortgage backed securities were independent and objective, purposely giving artificially high ratings to specific securities, and ignoring the risks involved. Submitted under the 1989 Financial Institutions Reform, Recovery, and Enforcement Act, this is the first federal legal action filed against a rating agency related to the economic crisis.<\/p>\n

Now, however, S & P is arguing that the DOJ\u2019s RMBS lawsuit does not succeed in alleging fraud. The credit rater says that it shouldn\u2019t be blamed for not having been able to foresee the financial crisis of 2008.<\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

In the U.S. District Court for the Central District of California, Standard & Poor’s Financial Services LLC is asking for the dismissal of a US Department of Justice securities fraud lawsuit accusing the ratings firm of knowing that it was issuing faulty ratings to collateralized debt obligations and residential mortgage-backed securities during the financial crisis. […]<\/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":[3742,3845,3757,3883],"tags":[],"class_list":["post-5448","post","type-post","status-publish","format-standard","hentry","category-collateralized-debt-obligation","category-credit-rating-agencies","category-mortgagebacked-securities","category-standard-and-poors"],"yoast_head":"\nStandard & Poor\u2019s Seeks Dismissal of DOJ Securities Fraud Lawsuit Over RMBS and CDO Ratings Issued During the Financial Crisis — Investor Lawyers Blog — May 9, 2013<\/title>\n<meta name=\"description\" content=\"In the U.S. District Court for the Central District of California, Standard & Poor's Financial Services LLC is asking for the dismissal of a US — May 9, 2013\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, 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