Tuesday, February 03, 2015
Indiana's Share Of S&P Settlement Only $21.5 Million
S&P misrepresented credit ratings for mortgage-back securities from 2004 to 2007, the lead-up period to the mortgage meltdown and ensuing financial crisis that signaled the beginning of the Great Recession and resulted in the largest bank bailouts in American history. The credit rating agency settled a lawsuit brought by the U.S. government for just $1.4 billion, a fraction of the economic losses sustained by the American people. Indiana's share of this measly settlement is just $21.5 million. Attorney General Greg Zoeller says that most of Indiana's share will be deposited in the state's general fund. The entire settlement, which should have been much higher, should have been used to pay down the little people's mortgages, not paid back into the government's coffers, since it's the little people who ultimately paid the price for the banking fraud.