Standard & Poor's Ratings Services will be charged in federal and state courts for alleged wrongdoing in its ratings of mortgage bonds before the 2008 financial crisis, according to a report published Monday.
New York-based S&P, a unit of the McGraw-Hill Companies, Inc. (NYSE:MHP), and U.S. Justice Department officials have been negotiating a possible settlement, but those talks appear to have failed, the Wall Street Journal said.
S&P is one of the three major credit ratings agencies that gave high marks to complex mortgage-backed securities that fueled the housing boom of the early 2000s. Those securities collapsed in the subprime mortgage crisis that, in turn, led to the 2009 recession.
Mike Obel works as Senior Editor, Copy Chief. Before that he was Markets Editor, assigning, editing and writing about business, markets, finance and economics. Before coming...