Ohio Attorney General Sues Credit Rating Agencies

Friday, November 20, 2009
Topics: Politics, Other
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A.G. Richard Cordray says reckless business practices resulted in five Ohio pension funds losing hundreds of millions of dollars.

The Ohio Attorney General has filed lawsuits against three credit rating agencies, alleging that reckless business practices resulted in five Ohio pension funds losing hundreds of millions of dollars. 

Cordray says Standard and Poors, Moody’s, and Fitch received lucrative fees while making some mortgage backed securities look much healthier than they actually were.

“The credit rating agencies sold out, and they sold us out,” Cordray said.  “They traded in their objectivity, and in exchange received massive profits.  As a result, Ohio police officers, firefighters, teachers, government workers, investors, and retirees of all stripes suffered tremendous losses - losses that according to our preliminary analysis exceed 450 million dollars.”

(.....457 million dollars :22)

Cordray’s lawsuit asks the court to order the ratings agencies to make restitution and regulatory reforms.