Moody’s will pay U.S. authorities $864 million in the case of irregularities in the assessments of mortgage-backed securities
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NEW YORK, January 14. /Offset. The TASS Correspondent. TASS Kirill Volkov/. Rating Agency Moody’s agreed to pay US authorities $864 million for the settlement of all claims and termination of an investigation initiated in respect of the company, which was accused of massive irregularities in the run-up to the financial crisis of 2008. This was reported on Friday by Bloomberg.
The U.S. justice Department began an investigation against Moody’s
According to him, about $437 million, Moody’s will pay the U.S. Department of justice, the remaining funds will be distributed to prosecutors ‘ offices in 21 state of USA, who conducted the investigation.
U.S. authorities accused Moody’s that it gave inflated ratings of mortgage bonds before the global financial crisis. Similar charges were brought against the rating Agency Standard & Poor’s. The latter was subsequently fined more than $1.3 billion.
Guided by positive evaluations of these agencies, many investors bought mortgage securities, and later, when the mortgage market collapsed, suffered huge losses. According to many experts, the collapse of the mortgage market contributed to the beginning of the financial crisis.