moody-02Feds to sue Moody’s over mortgage securities ratings

 

This is a usatoday.com article.

 

The Department of Justice plans to sue Moody’s over valuations the company assigned to mortgage-backed securities in the run-up to the nation’s financial crisis in 2008, the financial ratings giant said Friday.

Investors sent Moody’s (MCO) shares down more than 5.4% or $5.85 to a $102.24 close.

Prosecutors wrote in a letter Sept. 29  that the civil complaint would be filed in New Jersey federal court against Moody’s and its Moody’s Investors Service unit, the company disclosed in a litigation update included with its higher-than-forecast earnings results for the third quarter.

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