Moody’s to pay $864M to settle claims it inflated ratings

NEW YORK – Moody’s Corp has agreed to pay nearly $864 million to settle federal and state claims that he gave inflated ratings to risky mortgage investments in the years prior to the financial crisis.

The deal announced Friday had been struck under the New York-based rating agency, the Ministry of Justice and the attorneys general for 21 states and the District of Columbia.

It is a call to $437.5 million to the Department of Justice and $426.3 million euros will be distributed to the states and the District of Columbia.

Moody’s — along with the two other major rating agencies, Standard & Poor’s and Fitch — were widely criticized for giving low-risk, the ratings of risky mortgage securities sold before the crisis, as they reaped lucrative fees.

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