S&P Gilded Gemstone With Top Grades as U.S. Mortgages Crumbled

S&P Gilded Gemstone With Top Grades as U.S. Mortgages Crumbled

Hannelore Foerster/Bloomberg

The CDO, issued by Deutsche Bank AG and composed primarily of subprime mortgage-backed securities, is one of the deals the Justice Department named in its Feb. 4 lawsuit accusing the world’s largest credit-rater of deliberately understating the risks of mortgage bonds to win business from Wall Street banks.