Photo courtesy of Chicago Tribune
Illinois Attorney General Lisa Madigan has sued Standard & Poor’s (S&P), claiming the financial services company inflated credit ratings to risky mortgage-backed securities, sparking the ongoing housing and financial crises. Madigan says in doing so, the company—a subsidiary of The McGraw Hill Cos.—committed fraud.
"S&P was making hundreds of millions of dollars a year rating these deals," Madigan told the Chicago Tribune last week. "Without the rating agencies as enablers, none of these securities would have been able to be purchased by many investors."