U.S. government slams S&P with $5 billion fraud lawsuit
Finally! The mortgage backed securities that were rated AAA by the Standard and Poors Ratings agency, turned out to be worthless pieces of paper. How did these securities manage to get a AAA rating in the first place? Did S&P know that the securities would be worthless unless the housing market kept expanding (an erroneous assumption) or did they not even now what they were rating? The Justice Department says they knowingly gave false ratings. I wonder if Moody’s is next.