Now that McGraw Hill Financial & S&P have settled with the US Department of Justice (DOJ) shedding US$1.4 billion the DOJ is now turning screws on Moody’s. However according to the Wall Street Journal DOJ officials in recent months have quietly met with multiple former executives of Moody’s Investors Service to discuss ratings of complex securities before the crisis, according to people familiar with the situation.
The Justice Department lawyers probing Moody’s are still in the early stages of their investigation, according to people familiar with the matter. It isn’t yet clear whether it will result in a lawsuit.
The Justice Department began looking into Moody’s as far back as 2010. But government lawyers held off on a Moody’s case as they pursued a lawsuit against S&P that eventually was filed in February 2013. Perhaps the DoJ is taking its cue from the current ongoing litigation with S&P.
The DOJ suid S&P for US$5 billion and settled for US$687 million with an equial amount going to State attourney offices and the District of Columbia. Let’s see how long it takes Moody’s to cave in.
Source: The Wall Street Journal
