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Retirement plans may have suffered investment losses because the credit rating agencies inappropriately rated certain mortgage related securities.
Investigation Source
- Nationwide
Investigation Scope
Category Information
Investigation Topics
- Investments
- Unsuitable Investments
- Retirement Asset
Product or Service
- Employee Retirement Plan Sponsors or Administrators
Injury Type
- Monetary Loss
Investigation Details
Investigation and potential class action lawsuit against Moody's Investor Services, Standard & Poor's, and Fitch Ratings (collectively, the "Credit Rating Agencies") regarding losses suffered by retirement savings or pension plans which have lost a significant portion of their value as a result of the Credit Ratings Agencies' failure to accurately and appropriately value the credit risk of asset-backed and mortgage-backed securities involved in the subprime meltdown.
This investigation involves concerns that the Credit Rating Agencies contributed significantly to the recent market turmoil by underestimating the credit risk of subprime Residential Mortgage-Backed Securities ("RMBS") and other structured products, notably Asset-Backed Securities Collateralized Debt Obligations ("ABS CDOs").
Plan fiduciaries have reported that in the absence of high credit ratings by the Credit Rating Agencies, they would not have invested in certain securities that have decimated plan assets.
This investigation involves concerns that the Credit Rating Agencies contributed significantly to the recent market turmoil by underestimating the credit risk of subprime Residential Mortgage-Backed Securities ("RMBS") and other structured products, notably Asset-Backed Securities Collateralized Debt Obligations ("ABS CDOs").
Plan fiduciaries have reported that in the absence of high credit ratings by the Credit Rating Agencies, they would not have invested in certain securities that have decimated plan assets.
Defendant Details
| Name (Stock Symbol) | Brief Description |
|---|---|
| McGraw-Hill Companies, Inc., The (MHP) | The McGraw-Hill Companies, Inc. provides information services and products to the financial services, education, and business information markets. It operates under the Standard & Poors brand, which provides investment research, market indices, credit ratings, financial data, and fixed income research and analysis to investors, corporations, governments, financial institutions, investment managers, and advisors. |
| Moodys Investor Services | Moodys Investor Services, a subsidiary of Moodys Corporation, publishes credit ratings on a range of debt obligations, including various corporate and governmental obligations, structured finance securities, and commercial paper programs, as well as the entities that issue such obligations. |
| Moodys Corporation (MCO) | Moodys Corporation, through its subsidiaries, provides credit ratings and related research, data, and analytical tools. |
| Fitch Ratings Ltd. | Fitch Ratings rates the credit quality of financial instruments. Fitch Ratings is a majority-owned subsidiary of Fimalac, S.A. |