CHICAGO (AP) — 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.
She was among nearly two dozen attorneys general who, along with the U.S. Department of Justice, worked on the $1.38 billion settlement with S&P. Illinois’ share will go to the state’s underfunded pension systems.
The settlement with McGraw Hill Financial subsidiary Standard & Poor’s Financial Services LLC deals with ratings issued from 2004 through 2007. The agreement, which came after months of negotiations, also resolves lawsuits filed by the attorneys general of 19 states and the District of Columbia. Madigan first filed a lawsuit against S&P in 2012.
“S&P deliberately exploited its trusted reputation as an independent analyst to maximize profits,” Madigan told reporters. “In the process, S&P became the key enabler of the economic meltdown.”