With S&P agreeing to pay $1.375bn to settle allegations that it boosted mortgage securities ratings, attention has switched to Moody’s.
Attorneys-general in Connecticut and Mississippi said they are among the prosecutors stepping up their examination of the business. They were among the authorities that settled with Standard & Poor’s, the largest of the rating agencies, which agreed to pay the record sum to the Department of Justice, 19 US states and the District of Columbia.
Federal prosecutors recently interviewed Moody’s officials but it is unclear whether the long-running probe will result in a lawsuit, according to people familiar with the case.
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