NC attorney general joins Standard & Poor's case

In this Wed. Dec. 5, 2012, photo, containers are unloaded from cargo ships at the Port of Los Angeles. Most economists agree that the snapshot of U.S. economic growth released Wednesday, Jan. 30, 2012, is going to look dismal. (AP Photo/Nick Ut)

NC attorney general joins Standard & Poor's case

Published: 02:51:30 PM, Wed 06 February 2013 UTC

RALEIGH, N.C. (AP) — North Carolina's attorney general is joining 12 other states and the federal government by accusing Standard & Poor's Ratings Services in court of claiming to objectively evaluate investment risks while actually favoring and being paid by the companies selling securities.

Attorney General Roy Cooper on Tuesday filed a lawsuit in Wake County alleging the investments rating agency engaged in deceptive business practices. S&P has denied wrongdoing.

North Carolina's lawsuit comes a day after the federal government filed a similar complaint accusing the company of fraud for giving high ratings to risky mortgage bonds that helped launch the financial crisis.

Cooper's case contends S&P promoted itself as neutrally rating complex financial instruments while privately catering to investment banks selling the securities to keep their business.

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