Investigations may expand as states also pursue claims
Company says Justice Department civil action will cite FIRREA
Moody’s Corp. said federal officials are planning a civil lawsuit over its ratings of residential mortgage bonds in the years leading up to the 2008 financial crisis.
The U.S. Department of Justice is preparing a civil complaint alleging violations of the Financial Institutions Reform, Recovery, and Enforcement Act, Moody’s said today in a statement, citing a Sept. 29 letter from the agency.
The investigation “remains ongoing and may expand to include additional theories,” and unspecified state attorneys general have told the company they expect to pursue similar claims that may expand in terms of time periods, theories, asset classes or activities, Moody’s said. Read More…