[Occupymendocino] Fw: S&P accountability at last?

[susan nutter]

Sign petition below













Justice Dept. Sues S&P: Urge the DOJ to Prosecute More Wall Street Criminals





Raylene,






In the fall of 2011, over 27,000 Firedoglake activists called on the Justice Department's Securities and Exchange Commission to revoke Standard & Poors credit rating authority for their role in the 2008 financial crisis and subsequent threats to downgrade the US credit rating when faced with a federal investigation.






Just this week, the Department of Justice and California Attorney General Kamala Harris launched two lawsuits against Standard & Poors for defrauding investors in mortgage-backed securities in exchange for kickbacks from Wall Street banks, precipitating the meltdown.1






These lawsuits -- which seek damages upwards of $5 billion and $4 billion respectively -- could be the first real efforts to bring accountability to a major firm involved in the global financial crisis.






We put together a letter commending the DOJ for their attempts to bring financial criminals to justice, and encouraging them to continue by bringing suits against other culpable Wall Street firms and executives.




Please sign our letter thanking the US Department of Justice for bringing suit against S&P and encouraging them to bring suits against other Wall Street players involved in the 2008 financial crisis.






The DOJ wants S&P to pay $5 billion for making perhaps one of the biggest individual contributions to the meltdown: defrauding investors in mortgage-backed securities with misleading credit ratings in order to secure fees from Wall Street banks, nearly obliterating the economy in the process. If successful, they could be forced to pay roughly the equivalent of what their parent firm, McGraw-Hill, has made in the past 7 years.2






In addition, California's AG Kamala Harris is seeking damages of upwards of $4 billion for violating the state's False Claims Act, producing misleading credit ratings that eventually caused public pensions to lose an estimated $1 billion.3






Even if only one suit is successful, S&P will be forced to pay the largest penalty to-date of any firm involved in the 2008 crisis. While the DOJ has unfortunately settled with several major players in the subprime crisis over the past few years, reports indicate that they may actually be willing to take the suit to court this time.






This could be a game changer, and the DOJ needs to know the public is wholly behind their efforts to bring Wall Street criminals to court. Other ratings agencies like Moody's and Fitch were complicit in these crimes, as well as various firms across the industry, and they should be brought to justice as well.




Please sign our letter thanking the US Department of Justice for bringing suit against S&P and encouraging them to bring suits against other Wall Street players involved in the 2008 financial crisis.






Despite the years it has taken for this suit to come to fruition, and the various disappointing settlements that have allowed many of those involved in the crisis to skirt accountability, we are very pleased to see the DOJ finally take real steps towards prosecuting some Wall Street criminals.






In solidarity,






Brian Sonenstein


Campaign Director,


Firedoglake.com






Sources:


1. DOJ Suing S&P For $5 Billion Fraud Scheme. FDL News Desk, 2/6/13.


2. U.S., S&P Settle In for Bitter Combat. Wall Street Journal, 2/6/13.


3. California accuses S&P of deception in $4-billion lawsuit. LA Times, 2/5/13.







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