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HomeCT AG Blumenthal Suing Rating Agencies
Posted by Larry Doyle on March 10th, 2010 1:22 PM |
When investors lose their shirts, what is the next thing that happens? They get pissed. Then what? They call their lawyers and file lawsuits. While individual firms on Wall Street face lawsuits all the time, it is not often that the institution of Wall Street itself is sued.
In late January, we witnessed a massive lawsuit filed on behalf of the Federal Home Loan Bank of Seattle against a large number of Wall Street banks. To reference that suit, read here. Today, The Wall Street Journal highlights Connecticut Attorney General Richard Blumenthal to Sue Moody’s, S&P, the pillars of the Wall Street ratings game:
Connecticut Attorney General Richard Blumenthal will announce a lawsuit Wednesday against rating firms Moody’s Investors Service and Standard & Poor’s alleging that they knowingly assigned “tainted ratings” for “risky investments” backed by subprime loans. (more…)
Tags: Blumenthal Sues Moodys and S&P, Blumenthal sues rating agencies, Blumenthal sues wall street ratings agencies e, caveat emptor, Connecticut Attorney General Richard Blumenthal, financial regulation reform for rating agencies, lawsuits on Wall Street, Richard Blumenthal
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