Tennessee to receive $25 million from settlement with Standard & - WRCBtv.com | Chattanooga News, Weather & Sports

Tennessee to receive $25 million from settlement with Standard & Poor's

Posted: Updated:

Tennessee's Attorney General announced Tuesday that Tennessee, the U. S. Department of Justice, 18 states and the District of Columbia have reached a settlement with Standard & Poor's Financial Services LLC (S&P) resolving allegations that S&P misled investors when it rated structured finance securities in the lead-up to the 2008 financial crisis.

The settlement requires S&P to pay $1.375 billion to the states and the Department of Justice. Tennessee will receive $25 million for its role as a lead state in the enforcement actions against S&P.

In addition as part of the settlement, S&P agreed to comply with all applicable state laws and for five years will cooperate with any request for information from any state expressing concern over a possible violation of state law. S&P also agreed to a statement of facts acknowledging conduct related to its analysis of structured finance securities.

In August 2014, the United States Securities and Exchange Commission adopted new requirements for credit rating agencies like S&P that address conflicts of interest and procedures to protect the integrity and transparency of rating methodologies and that provide for certifications to accompany credit ratings attesting that the ratings were not influenced by other business activities.

The S&P settlement documents may be viewed by going online to www.tn.gov/attorneygeneral and clicking on "Filings of Interest."

Powered by Frankly