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Standard & Poor's may reach $1.38-billion settlement on mortgage bond ratings
Standard & Poor's may reach $1.38-billion settlement on mortgage bond ratings

Standard & Poor's may complete as early as Monday a $1.38-billion accord with the U.S. and 19 states, including California, over claims that it inflated subprime mortgage bond ratings before the financial crisis, a person familiar with the talks said. The ratings company deepened the 2008 economic collapse by giving top ratings to bad mortgage debt to win business from Wall Street banks, the government said. The U.S. had said it might seek as much as $5 billion when it sued S&P in 2013. The states and the District of Columbia also sued the McGraw Hill Financial Inc. unit. The Justice Department has secured settlements worth tens of billions of dollars during the last two years...

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