Expansion, Spain
The agreement, which has announced the signing McGraw Hill, settles a dispute that began after the 2008 crisis as a suspected Standard & amp; Poor’s was inflating the grades of high-risk bonds
Through the agreement reached, S & amp;. P will pay US $ 687.5 million to the Department of Justice and the same amount is the allocated nineteen states and the District of Columbia. In addition, another $ 125 million will go to an agency that manages pension and health services of public employees in California.
The lawsuit accused the agency of defrauding investors by “deliberately inflate” the ratings of mortgage bonds and other securities known as CDO (collateralized debt obligations).
It dealt with the first legal action from the federal government against one of the most important risk rating agencies, which consider authorities and key analysts element in the outbreak of the financial crisis of 2008.
In its statement, McGraw Hill explained that the lawsuit was initially raised by the Justice Department and then seconded by nineteen states and the District of Columbia or Washington. He adds that the parties have agreed to resolve the dispute and to “avoid delays, uncertainty, inconvenience and expense of further litigation”
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