Delaware Joins Other States, Federal Government in Suing Standard & Poor's Over Mortgage-Backed Securities

Feb 05, 2013 -- 3:41pm

Delaware Attorney General Beau Biden is joining other Attorneys General and the federal government in a lawsuit against Standard & Poor’s.

Biden has announced that Delaware will be joining a dozen other states, Washington, D.C. and the federal government in suing Standard & Poor’s for violating state law by misrepresenting its evaluations of mortgage-backed securities, which led to the burst of the housing bubble in 2007, followed by the financial crisis in 2008. The lawsuit accuses S&P of making decisions that were based on its own financial interests, and its desire to get more fees from financial institutions that issued the securities.

Delaware’s lawsuit focuses on ratings issued by S&P between 2001 and 2012, and especially between 2004 and 2007.

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