Moody's, S&P settle lawsuits over debt ratings
Source: AP-Excite
NEW YORK (AP) - Ratings agencies Standard & Poor's, Moody's and investment bank Morgan Stanley (MS) have settled two lawsuits dating back to the financial crisis that accused them of hiding risky investments.
The lawsuits from King County in Washington state and Abu Dhabi Commercial Bank claimed that the ratings agencies and Morgan Stanley hid the risk of investing in a fund that purchased bonds backed by subprime mortgages.
Judge Shira Scheindlin dismissed the lawsuits on Friday, in federal court in New York, with prejudice, which means they can't be filed again.
Spokesmen for the McGraw-Hill Cos., which owns S&P, Moody's Corp. and Morgan Stanley confirmed the settlements but did not disclose terms.
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In this May 22, 2007 file photo, the McGraw-Hill Cos. building is shown in New York. A spokesman for the McGraw-Hill Cos., which owns S&P, Moody's Corp. and Morgan Stanley confirmed that ratings agencies Standard & Poor's, Moody's and investment bank Morgan Stanley have settled two lawsuits dating back to the financial crisis that accused them of hiding risky investments. The lawsuits from King County in Washington state and Abu Dhabi Commercial Bank claimed that the ratings agencies and Morgan Stanley hid the risk of investing in a fund that purchased bonds backed by subprime mortgages. Judge Shira Scheindlin dismissed the lawsuits, in federal court in New York on Friday, April 26, 2013, with prejudice. This means they can't be filed again. (AP Photo/Mark Lennihan, File)
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