George Jepsen

States, Feds Settle With Moody's; Connecticut To Receive $31.5 Million

States, Feds Settle With Moody's; Connecticut To Receive $31.5 Million

Credit rating agency Moody's has reached a settlement with attorneys general in 20 states, including Connecticut, and the U.S. Department of Justice over allegations it misled investors when it issued positive ratings for shaky mortgage-backed securities in the lead up to the 2008 financial crisis.

Connecticut, which was the first state to sue Moody's, will receive $31.5 million as part of an $863.7 million settlement, Connecticut Attorney General George Jepsen said Friday night. Connecticut's share of the settlement will go to the general fund.

The settlement is similar to one reached in 2015 against Standard & Poor's, which agreed to pay $1.375 billion to settle...

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