Standard and Poor's

S&P sued
12:17 pm
Wed January 25, 2012

Ill. attorney general sues rating agency over housing bubble

Ill. Attorney General Lisa Madigan has sued S&P for fraudulently assigning high credit ratings to mortgage-backed securities.
(St. Louis Public Radio)

Illinois Attorney General Lisa Madigan has filed suit against ratings agency Standard and Poor's for fraudulently assigning high ratings to mortgage-backed investments despite their risk.

The suit filed today in Cook County - the state's largest - argues that instead of independently evaluating mortgage-backed securities, S&P gave them higher ratings than warranted to benefit investment bank clients and the agency's bottom line.

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