Lo New York State has launched an investigation into the top three rating agencies (Moody's Investor Service, S&P and Fitch Ratings) to ascertain whether they have violated the terms of a plea deal from 2008.
The transaction, recalls Bloomberg News, had been reached with the then Attorney General Andrew Cuomo and envisaged that some procedures of the agencies, accused of having inflated the valuations of subprime mortgage-backed securities during the housing bubble.
It was about derivatives at very high risk and almost completely worthless (because the vast majority of Americans would not have been able to repay the loans received), to which, however, the agencies granted the maximum possible rating, or the much coveted triple A. The conflict of The underlying interest consisted in the fact that the same banks that issued the bonds paid the agencies.
Under the terms of the settlement, S&P, Moody's and Fitch should have reviewed it payment methods for assigning ratings, while increasing transparency of activities and making more information public.
Current New York state Attorney General Eric Schneiderman is investigating whether the terms of the settlement have been met. And for the moment the agencies are taking refuge in a classic "no comment".
Attachments: Reuters
