Moody's Corporation settles following conduct investigation
JEFFERSON CITY - Moody's Corporation has agreed to a settlement following a conduct investigation by the U.S. Dept. of Justice, 21 states and the District of Columbia.
There are other terms to the settlement as well that will be monitored with an annual certification by the CEO of Moody’s Corporation, which will be provided to Missouri every year for the next four years, certifying that Moody’s is following certain compliance requirements.
“This settlement is a major win for the people of Missouri,” Missouri Attorney General Josh Hawley said. “Missouri’s businesses and economy suffered at the hands of deceptive and reckless credit rating agencies and justice has now been served.”
Moody's allegedly assigned inflated credit ratings to assets packaged and sold by the Wall Street investment banks before the financial crisis of 2007. The investigation found evidence that Moody’s altered its process so that the ratings represented a greater risk than Moody’s disclosed to investors and consumers.
The state of Missouri was represented by Joyce Yeager, Anne Schneider, Amy Haywood, Caleb Aponte and Nathan Aquino.