Blumenthal Statement on $1.375 Billion Standard & Poor’s Settlement

(Hartford, CT) – U.S. Senator Richard Blumenthal (D-Conn.) issued a statement today in response to a $1.375 billion settlement with Standard & Poor’s reached by the U.S. Department of Justice and state Attorneys General, action launched by Blumenthal in March 2010 as then Connecticut Attorney General.

A similar lawsuit against Moody’s is pending.  Both lawsuits seek compensation and other relief from the companies for knowingly assigning tainted credit ratings to risky investments backed by sub-prime loans, enabling the financial collapse that lead to the worst economic downturn since the Great Depression.

“Today's settlement is a victory for consumers - including pension plans and small businesses - who rightfully expected that securities ratings by Standard & Poor’s‎ accurately reflected the safety of those investments. Standard & Poor’s failed them miserably—unconscionably violating the public’s trust and helping to enable a global financial collapse from which we have still yet to fully recover. I am proud that Connecticut was the first state to hold these rating agencies accountable, and hope and expect that this $1.375 billion settlement will enforce a new era of responsibility in this industry. The settlement is a testament to the joint power of the Department of Justice and state Attorneys General in advocating and defending the rights of consumers,” Blumenthal said.