News Summary: S&P says US suit is 'retaliation'

Published on NewsOK Modified: September 3, 2013 at 5:53 pm •  Published: September 3, 2013
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RATINGS RETALIATION?: Standard & Poor's says the U.S. government sued the rating agency as "retaliation" for its downgrade of the country's credit rating.

US GOVERNMENT CLAIMS: The Justice Department filed civil charges against S&P in February, alleging that the agency did not warn investors that the housing market was collapsing because it would have been bad for its business. The government also says S&P knowingly inflated ratings of risky mortgage securities that helped trigger the financial crisis. It is seeking $5 billion in penalties.

S&P DENIAL: S&P has repeatedly denied the allegations. It said in a court filing Tuesday that its opinions were independent and based on a good-faith assessment of how mortgages performed during a turbulent time in the market.