Illinois Pension System
Illinois will receive a $52.5 million share of a multi-state settlement with Standard & Poor’s over allegations that the credit ratings agency knowingly inflated ratings of risky mortgage investments that sparked the financial crisis of 2008, Attorney General Lisa Madigan announced Tuesday.
Illinois is set to receive a $300 million share of a record $16.7 billion nationwide settlement with Bank of America, over allegations of financial misconduct that helped lead to the 2008 financial crisis.
The deal announced Thursday by the U.S. Justice Department stems from the bank’s role in the sale of mortgage-backed securities in the run-up to the financial crisis.
It is part of a national settlement with Citigroup because of the bank’s misconduct in the sale of risky mortgage-backed securities
Illinois edged closer to having its worst-in-the-nation credit rating lowered even further as a rating agency declared Thursday that failure to address massive pension problems is a “credit negative” for the state.
There are renewed calls for changes in the way government pensions are funded in Illinois, following a report on the kind of pensions Mayor Richard M. Daley is in line for.