{"id":9042,"date":"2015-02-03T20:48:05","date_gmt":"2015-02-04T04:48:05","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=9042"},"modified":"2015-02-03T20:48:05","modified_gmt":"2015-02-04T04:48:05","slug":"sp-pays-1-3-billion-defrauding-investors-creating-national-financial-crisis","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=9042","title":{"rendered":"S&P Pays $1.3 Billion for Defrauding Investors, Creating National Financial Crisis"},"content":{"rendered":"

\"Gavel\"<\/a>WASHINGTON D.C.<\/strong> – Standard & Poor\u2019s Financial Services LLC agreed to a $1.3 billion settlement for defrauding investors which lead to a national financial crisis, the U.S. Justice Department announced Tuesday.<\/p>\n

The settlement agreement<\/a> with the ratings company also involved 19 states and Washington D.C.<\/p>\n

Federal prosecutors said the ratings company used\u00a0 financial products known as Residential Mortgage-Backed Securities and Collateralized Debt Obligations to bamboozle investors.<\/p>\n

The settlement resolves the Department of Justice’s 2013 lawsuit against S&P and its parent corporation McGraw Hill Financial Inc. In addition, it resolves the lawsuits filed by 19 states and Washington D.C.<\/p>\n

Each of the 21 lawsuits allege that investors incurred substantial losses on Mortgage-Backed Securities and Debt Obligations for which S&P issued inflated ratings that misrepresented the securities\u2019 true credit risks.<\/p>\n

Other allegations assert that S&P falsely represented that its ratings were objective, independent and uninfluenced by S&P\u2019s business relationships with the investment banks that issued the securities.<\/p>\n

The settlement is comprised for several elements, say authorities:<\/strong><\/p>\n