News Summary: Justice Department sues S&P agency

News Summary: Government sues S&P, accusing it of misleading mortgage ratings

Associated Press

FEET OF CLAY? The government sued Standard & Poor's rating agency, accusing it of misleading investors by giving high marks to risky subprime mortgage investments.

HEAT'S ON: The government has been announcing lawsuits and settlements with a number of firms over alleged wrongdoing that helped ignite the financial crisis. This is the first major action against a credit rating agency.

WHO KNEW? S&P says the government is too harsh, that it's being blamed for failing to predict an unpredictable crisis. It denies wrongdoing. Others say the government is too lenient, and should have sought criminal charges, not just civil.

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