Posts in RMBS.
On February 3, the Department of Justice and 19 State Attorneys General announced their $1.375 Billion settlement of DOJ's FIRREA suit and related State AG actions against Standard & Poor's and its parent McGraw-Hill Companies over ratings practices in CDO and RMBS securities contributing to the 2007-2008 financial crisis. The companies entered a separate $125M settlement with Calpers, California's public retirement system. S&P will pay half the $1.375 Bn to DOJ (as a FIRREA "civil monetary penalty"), and the other half among the various State AG plaintiffs ($25M to Tennessee ...
Tags: CDO Evaluator Model, civil monetary penalty, CMBS, Department of Justice, FIRREA, McGraw-Hill, McGraw-Hill Companies, RMBS, S&P, Standard & Poor, The Covered Conduct
Maybe I'm just getting a head start on my "bah humbug" mood for the holidays, I don't know. Did it strike anyone else as discordant that almost a third of the record-setting JPMorgan RMBS settlement was ear-marked to fund "affordable housing / erase urban blight" policy initiatives? Is it right to fund the Administration's social policies through the settlement of civil litigation brought by DOJ? On November 19th, the Justice Department and various state AG's (among others) announced a $13Bn global settlement -- "the largest settlement with a single entity in American history" -- of ...