US Investigates Standard & Poor’s Mortgage Ratings

Standard & Poor’s mortgage rating for securities is currently being investigated by the US justice department. It was reported in the New York Times that this investigation actually started before S&P announced the cut of the AAA credit rating of the US to AA+ this month.

The justice department is inquiring on the instances when the agency’s analysts gives lower ratings to mortgage bonds despite being overruled by other S&P managers for business in the company.

It is still not clear whether this investigation will also take into consideration two other credit ratings agencies, Moody’s and Fitch.

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