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 assigns, edits and writes stories about business, markets, finance and economics. Before coming to International Business Times, he worked on the Finance Desk of...