A combination of executive and congressional inaction has left U.S. Attorney General Eric Holder without permanent appointees in at least six top positions inside the Justice Department, even as he faces increased criticism from U.S. lawmakers.
The Justice Department suit against Standard & Poor’s has entered a phase where lawyers spend months arguing over procedure, and progress is slim. Tony West, who’s overseeing the case. knows the feeling: His nomination to become the agency’s No. 3 official has been blocked for half a year.
When the U.S. Justice Department charged Standard & Poor’s with fraud this month and demanded $5 billion in restitution, it culminated the Obama administration’s four-year pursuit of financial chicanery masquerading as sacrosanct credit ratings.
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.
The U.S. is seeking as much as $5 billion in penalties from McGraw-Hill Cos. and its Standard & Poor’s unit as punishment for inflated credit ratings that Attorney General Eric Holder said were central to the worst financial crisis since the Great Depression.
Maxim Healthcare Services Inc., which provides in-home health and nursing services, will pay $150 million to resolve criminal and civil probes of fraudulently overbilling federal and state governments.
Bank of America Corp. reached a $315 million settlement with a group of investors who sued its Merrill Lynch unit claiming they were misled about mortgage- backed securities, according to a court filing.