Mr Cooper Group Inc (COOP)

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Ohio Attorney General Sues Ratings Agencies.

About time they got around to this batch of scambags too. Moody's dump on Wamu hurt them BAD, and with this, it looks like they are suspected of taking payments to do such things...wonder who, and how much money changed hands over Wamu? If Moody's was found to be colluding with those who were out to destroy Wamu, then they would also be liable for billions in damages. The evidence just keeps building in this case, we could wind up with a system/paradigm changing event here, AND a legendary settlement when all is said and done. JMHO of course.

Perhaps this article needs to be forwarded to our lawyers?

Tick-Tock.


http://online.wsj.com/article/SB10001424052748704888404574547592472039198.html

By NATHAN BECKER

Ohio Attorney General Richard Cordray has filed suit against ratings agencies Standard Poor's Ratings Services, Moody's Investors Service and Fitch Ratings, alleging they provided misleading ratings in exchange for money.

The suit, filed in U.S. District Court on behalf of five Ohio public employee retirement and pension funds, charges the agencies with "wreaking havoc on U.S. financial markets by providing unjustified and inflated ratings of mortgage-backed securities in exchange for lucrative fees from securities issuers."

The funds lost an estimated more than $457 million because of the investments, Mr. Cordray said. The agencies gave many of the investments the highest-possible investment-grade credit ratings, normally given to the safest corporate bonds in part because of fees they got from the securities issuers, he said.

"The rating agencies assured our employee pension funds that many of these mortgage-backed securities had the highest credit ratings and the lowest risk," Mr. Cordray said. "But they sold their professional objectivity and integrity to the highest bidder."

It's not the first time ratings agencies have been sued with relation to the economic crisis. New York state Attorney General Andrew Cuomo reached an agreement as part of a settlement with firms last year to overhaul the way they collect fees.

Agencies in the past have argued against suits, saying their opinions are protected by free speech.