California Probes Credit Rating Agencies

By Peter Henderson

California Attorney General Jerry Brown issued subpoenas on Thursday to Standard & Poor’s, Moody’s Investors Service, and Fitch Ratings as he launched an investigation of whether they broke state law with the ratings they provided mortgage-backed securities.

“These agencies gave their seal of approval, their highest ratings, to underlying securities that were highly dangerous and in fact wreaked havoc on the lives of millions of people,” Brown said at a news conference.

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