SoFi Starts Hedge Fund; Wells Changes Appraisal Policy; Where Does Penalty Money Go?


Posted To: Pipeline Press

Settlement is the name of the game for lenders, investors…and the rating agencies. Moody’s Investors Service Inc. a greed to pay $130 million to settle claims by the California Public Employee Retirement System (Calpers) over allegedly inflated ratings on residential-mortgage bond deals. Moody’s averts a trial – good luck picking a jury on issues like these, right? The settlement follows one from a year ago that Standard & Poor (owned by McGraw Hill Financial) paid $125 million to settle claims by Calpers over grades on subprime mortgages. (The case is California Public Employees’ Retirement Systems v. Moody’s Corp., CGC 09-490241, California Superior Court, San Francisco.) But the fun never ends! The U.S. Justice Department is rumored to be deciding whether it will sue Moody’s over similar…(read more)

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