INDIANAPOLIS (AP) – Indiana will get $21.5 million from a multi-state settlement of allegations that Standard & Poor’s knowingly inflated its ratings of risky mortgage investments in the years prior to the 2008 financial crisis.
The $1.4 billion settlement involves the U.S. government, 19 states and the District of Columbia and covers ratings issued from 2004 through 2007.
The settlement announced Tuesday resolves a court fight that began with a government lawsuit two years ago. It says S&P misrepresented its process used to assign credit ratings to mortgage-based securities. Those maneuvers were aimed at retaining clients and increasing market share.
The Justice Department says the inflated ratings helped trigger the financial crisis.
Attorney General Greg Zoeller (ZEL’-ur) says a majority of Indiana’s share of the settlement will go to the state’s General Fund.