Standard & Poor’s Sued by New Jersey Over Bond Ratings
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Standard & Poor’s Financial Services LLC and its parent, McGraw Hill Financial Inc., were accused in a lawsuit by New Jersey of failing to give objective ratings to mortgage-backed securities.
Standard & Poor’s claimed that its ratings of the securities were independent when they were actually driven by sales goals, John J. Hoffman, New Jersey’s acting attorney general said today in a statement. The filing of the lawsuit couldn’t immediately be confirmed in court records.