The Illinois attorney general filed a lawsuit Wednesday accusing Standard & Poor’s of misleading investors by assigning its highest ratings to risky mortgage-backed investments during the years leading up to the crash of the housing market. The lawsuit from Lisa Madigan’s office alleges the agency compromised its independence by issuing high ratings for unworthy or risky investments as part of a strategy to boost revenue and market share. The lawsuit cites internal emails and conversations, including an instant messenger exchange in April 2007 in which an employee tells another that an investment ‘could be structured by cows and we would rate it.’
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