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U.S. Justice Department Probes S&P on Improper Ratings of Mortgage Securities

HeadlineAug 18, 2011

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.

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