Ratings agencies Standard & Poor’s and Moody’s have become embroiled in legal action in the wake of the credit crisis, reports the Daily Telegraph. Action has been brought by shareholders, including pension and annuity funds, against Robert Bahash, the executive vice president and chief financial officer of The McGraw-Hill Companies, which owns S&P, and Linda Huber, the chief financial officer of Moody’s Corporation. They claim Mr Bahash and Ms Huber “misrepresented or failed to disclose” that their ratings agencies “assigned excessively high ratings to bonds backed by risky sub-prime mortgages – including bonds packaged as CDOs.”

This entry was posted by Sam Jones on Monday, November 26th, 2007 at 4:16 and is filed under Capital markets, People. Tagged with moody's, Standard and Poor's. Edit this entry.