The U.S. Department of Justice is investigating whether the credit rating agency Standard & Poor’s improperly rated dozens of mortgage securities leading up to the nation’s financial crisis. According to the New York Times, the probe is focusing on occasions where Standard & Poor’s managers overruled lower-level analysts who wanted to assign lower ratings to mortgage bonds. The investigation was launched before Standard & Poor’s decision to downgrade the U.S. credit rating earlier this month. It is unclear if the Justice Department is also investigating the other two major ratings agencies, Moody’s and Fitch.
U.S. Justice Department Probes S&P on Improper Ratings of Mortgage Securities
HeadlineAug 18, 2011