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Moody's pays $864 million to settle with US over pre-crisis ratings

Reuters logo Reuters 1/14/2017 By Karen Freifeld
A screen displays Moody's ticker information as traders work on the floor of the New York Stock Exchange© REUTERS/Brendan McDermid A screen displays Moody's ticker information as traders work on the floor of the New York Stock Exchange

Moody's (MCO) has agreed to pay nearly $864 million to settle with U.S. federal and state authorities over its ratings of risky mortgage securities in the run-up to the 2008 financial crisis, the U.S. Department of Justice said on Friday.

The credit rating firm reached the deal with the Justice Department, 21 states and the District of Columbia, the Department said in a statement.

The agreement comes two years after S&P Global's (SPGI.N) Standard & Poor's entered into a $1.375 billion accord with the Justice Department, 19 states and the District of Columbia over similar claims. Standard and Poor's is the world's largest ratings firm, followed by Moody's.

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