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Mississippi to receive $33M from S&P settlement

JACKSONmoney hands_rgb — The state of Mississippi will receive $33 million from a national settlement with Standard & Poor’s over allegations that it knowingly inflated its ratings of risky mortgage investments that helped trigger the financial crisis in 2008.

Attorney General Jim Hood says in a news release that Mississippi sued S&P in 2011, joining with Connecticut, the first State to sue in 2010. .By 2013, the Justice Department and 17 other states filed similar lawsuits against S&P.

Standard & Poor’s is paying about $1.38 billion in the settlement announced Tuesday over ratings issued from 2004 through 2007.

Hood says the credit rating agencies were just as culpable as the investment banks in causing the financial crisis. Hood says the credit rating agencies held themselves out to be objective and independent.

 

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About Ross Reily

Ross Reily is editor of the Mississippi Business Journal. He is a husband to an amazing wife, dad to 3 crazy kids and 2 dogs. He is also a fan of the Delta State Fighting Okra and the Boston Red Sox.

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