S&P close to historic settlement over its role in the financial crisis
S&P and US Justice Department closing in on $1.37 billion settlement
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Standard & Poor’s Rating Services is reportedly close to reaching a historic settlement with the US Justice Department and several states in a case claiming that S&P knowingly played a part in the 2008 financial crisis.
The Wall Street Journal reported that the $1.37 billion deal could be struck as early as Thursday. If the settlement is reached, it would be the largest paid by a ratings agency over allegations of unfair bond grading leading up to the 2008 financial crisis, which was deepened by the bursting of the housing bubble.
The lawsuits claim that S&P issued positive grades of residential mortgage bonds when the firm knew the grades were not accurate. In all, 20 states and Washington D.C. filed lawsuits against S&P.
The US Financial Crisis Inquiry Commission, tasked with investigating the crisis, said that S&P and other credit ratings agencies were “key enablers of the financial meltdown.”
S&P has not signed the settlement yet and it’s unclear exactly when it will be agreed, but sources close to the deal say it should not be longer than a week, the Journal reported.
Follow Payton Guion on Twitter @PaytonGuion.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments