Former U.S. Treasury Secretary Timothy Geithner asked a judge to quash a subpoena by McGraw Hill Financial Inc. and its Standard & Poor’s unit seeking information tied to their claim that the U.S. sued the companies in retaliation for a downgrade of government debt.
Standard & Poor’s said President Barack Obama met with Treasury Secretary Timothy Geithner just before Geithner warned the company to expect a response to its downgrade of U.S. debt, an event that justifies its request to see White House communications to help defend fraud claims.
Standard & Poor’s shouldn’t get to see communications among White House officials including President Barack Obama to try to back its claim that the U.S. sued the company to retaliate over a government debt downgrade, the Justice Department said.
For-profit colleges, bruised by years of investigations and rule-making, may face additional financial pressure from a new wave of state probes by attorneys general and the U.S. Consumer Financial Protection Bureau.
Former U.S. Treasury Secretary Timothy Geithner told McGraw Hill Financial Inc. Chairman Harold W. McGraw III in 2011 that Standard & Poor’s downgrade of the U.S. debt would be met by a response, S&P said.
DoubleLine Capital LP executive Cris Santa Ana testified that likenesses were to be expected between the firm’s proprietary system for analyzing mortgage bonds and the approach used at TCW Group Inc., where he formerly worked.
U.S. stocks rose, with the Standard & Poor’s 500 Index erasing a loss for 2014 to close at a record, as the World Bank lifted its global growth forecast and Bank of America Corp.’s profit spurred a rally in financial shares.
As many as nine current and former employees of McGraw Hill Financial Inc.’s Standard & Poor’s unit may be questioned by U.S. Justice Department lawyers as part of a fraud lawsuit against the ratings company.