Rating agency Standard & Poor's, Moody's and Morgan Stanley investment bank have settled two lawsuits accusing them of financial crisis can be traced back to hide venture capital.
Possession of the risk of litigation claims in King County, Washington, and Abu Dhabi Commercial Bank rating agencies and Morgan Stanley to invest in a fund to buy bonds backed by subprime mortgages.
Hilla Scheindlin judge dismissed the lawsuit on Friday in New York federal court, prejudice, which means they can not be filed again.
McGraw - Hill dissatisfaction, which owns Standard & Poor's, Moody's and Morgan Stanley spokesman confirmed the settlement, but did not disclose.
"The settlement allows us to significant legal defense and related expenses, as well as distraction behind us protracted litigation, said in an emailed statement:" Moody's spokesman Michael Adler. "We are satisfied, which is in the best interests of our company and our shareholders."
McGraw - Hill spokesman Jason Stavanger, do not admit any liability or wrongdoing of the case has been settled.
Critical review of the rating agencies, following the 2008 financial crisis to the top-notch rating of the investment backed by subprime mortgages. As installed in the housing market, especially subprime loans default and loss, the value of bad debt bonds plummeted.
With the collapse of the mortgage market, the rating agencies to significantly cut its investment rating.
The decline in value of such investments, funds buy bonds filed for bankruptcy. Kings County and Abu Dhabi sued the rating agencies and Morgan Stanley claimed bank misled some of their investment, these are the part of SIVs security.
Structured investment vehicles is a fund short-term securities issued at low interest rates to borrow money, then lend the money to higher interest rates by purchasing long-term securities. This process can make a profit, the difference between the investors.
 



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