Illinois AG Sues S&P

English: Lisa Madigan, Attorney General of Ill...

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The Illinois attorney general has filed a lawsuit accusing Standard & Poor’s of misleading investors by assigning its highest ratings to risky mortgage-backed investments.

The suit alleges that the agency issued AAA ratings for unworthy investments to boost revenue and market share. It cites internal dialogue, including an instant messenger conversation in which one employee told another an investment “could be structured by cows and we would rate it.”

The attorney general began investigating S&P in early 2010. She has been involved in discriminatory-lending suits against Countrywide Financial Corp. and Wells Fargo. In December, the United States Department of Justice announced a $335 million settlement with Bank of America stemming from her lawsuit.

Via The Washington Post.

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