Ad Majorem.....Wealth Builders
From ABC News | February 5, 2013 by Daniel Wagner and Christina Rexrode AP business writers
The US government is suing S & P in California courts over high ratings on mortgage bonds that contributed to the financial crisis. The civil claims $5 billion in damages.
McGraw Hill which owns the rating agency claims the suit is meritless; claiming that hindsight can not be used as basis for the lawsuit.
However, the US Attoney General Eric Holder says that this is the first major step towards punishing those who contributed to the worst financial crisis in history. The Department of Justice before was criticized for not acting decisively on those who contributed to the crisis.
The claim for damages is several times bigger than the annual revenues of the rating agency and as large as that of the mother company, McGraw Hill.
The loss to the economy is more than $5 billion.
Several states are expected to join the fray: Connecticut, Delaware, District of Columbia, Iowa, Illinois, Mississipi and District of Columbia California has all ready filed a lawsuit in California Superior Court in San Francisco.
Can S & P get of this lawsuit intact?
Can they be blamed for the crisis?
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