Wash. joins complaint against Standard & Poor's

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Associated Press

Posted on February 5, 2013 at 11:32 PM

Updated Tuesday, Feb 5 at 11:32 PM

SEATTLE (AP) — The state Attorney General's office has announced that Washington is joining other states and the U.S. Department of Justice in filing a suit against credit ratings agency Standard & Poor's.

The complaint says Standard & Poor misrepresented its objectivity and independence and allowed investment bank clients to influence its analysis of structured finance securities backed by subprime mortgages, which were one of the triggers of the recession.

The complaints say Standard & Poor assigned inflated credit ratings to the subprime assets packaged and sold by Wall Street investment banks starting as early as 2001 to around 2011.

Ferguson says Washington state will consider amending its complaint to include civil penalties and restitution.

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