WASHINGTON The U.S. government late Monday accused debt rating agency Standard & Poor’s of fraud for giving high ratings to risky mortgage bonds that helped bring about the financial crisis.
The civil suit, filed in Los Angeles federal court, is the first enforcement action the government has taken against a major rating agency related to the financial crisis.
S&P, a unit of New York-based McGraw-Hill Cos., has denied wrongdoing. It says the government also failed to predict the subprime mortgage crisis.
Read tomorrow's Arkansas Democrat-Gazette for full details.