U.S. Government Suing S&P
For the first time, since the great recession, the U.S. government is suing a ratings agency, for giving thumbs up, on risky mortgages.
FOX News Radio’s Jared Halpern reports from Washington:
Standard and Poor’s denies any wrongdoing, but the government says the ratings firm knowingly misled investors about sub-prime mortgages.
Attorney General Eric Holder calling the lawsuit a historic step forward.
(Holder) “To punish the conduct that is believed to have contributed to the worst economic crisis in recent history.”
This is the government’s first major action against of the credit rating agencies that stamped seals of approval on the mortgage bundles before the 2008 housing bust.
S&P argues the U.S. government was also unable to predict the sub-prime crisis.
In Washington, Jared Halpern, FOX News Radio.