Standard & Poor’s is nearing a settlement of about $1 billion with the U.S. for allegedly misleading investors about its ratings of mortgage-backed securities before the financial crisis. Per Bloomberg:
The settlement between the McGraw Hill Financial (MHFL) and the Justice Department could close as early as this quarter.
New York-based S&P, the only credit rater sued by the Justice Department’s residential mortgage-backed securities working group, has alleged it was singled out because of its downgrade of U.S. debt in 2011, while its competitors, which issued the same grades for the same securities, weren’t sued by the U.S. The case is tentatively scheduled for trial in September.