McGraw-Hill Cos.’s Standard & Poor’s unit and Ambac Financial Group Inc. must face claims of negligent misrepresentation and unfair business practices in a lawsuit alleging they conspired to force local governments in California to purchase bond insurance they didn’t need.
Moody’s Corp., the second-largest credit rating firm, issued “virtually identical” grades on the same structured products that compelled the Justice Department to sue its main competitor, Standard & Poor’s, according to researcher Height Analytics LLC.
The Justice Department decision to sue Standard & Poor’s has investors asking why Moody’s Investors Service and Fitch Ratings weren’t targeted for awarding the same top grades to troubled mortgage bonds and other debt securities.
Energy and technology companies are among non-financial firms granted a three-year reprieve from parts of European Union rules on over-the-counter derivatives, under a compromise deal backed by lawmakers yesterday.
Moody’s Investors Service, Standard & Poor’s and Fitch Ratings are being investigated by the New York Attorney General over whether they breached a 2008 settlement with the state, a person familiar with the matter said.