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News Summary: DOJ suit overshadows Moody's 4Q

The Associated Press

COLLATERAL DAMAGE?: Moody's fourth-quarter net income jumped 66 percent and revenue blew away Wall Street expectations, but shares slid with many expecting the ratings agency will be the next target of the Justice Department, which filed a suit against a rival for its actions before the housing market collapse.

RATING THE RATERS: The Obama administration accused Standard & Poor's on Tuesday of refusing to warn investors that the housing market was collapsing in 2006 because it would be bad for business. According to the lawsuit, S&P gave high marks to the investments because it wanted to earn more business from the banks that issued them..

NEXT STEP A DOOZY: Now, New York Attorney General Eric Schneiderman is examining the nation's biggest credit rating agencies' compliance with agreements reached by his predecessor, Andrew Cuomo, that ended an investigation into mortgage-backed securities. An official with knowledge of the investigation, who was not authorized to speak publicly, says a subpoena this week went to S&P and information requests to Moody's and Fitch.