Moody’s to pay $864 mln to settle claims tied to housing-market collapse

Moody’s Corp. said Friday it agreed to pay $864 million to the U.S. Department of Justice and several states in connection with bond ratings it issued before the 2008 housing-market collapse.

“Moody’s failed to adhere to its own credit rating standards and fell short on its pledge of transparency in the run-up to the Great Recession,” said Justice official Bill Baer, the Wall Street Journal reported.

Moody’s said in a statement it determined the agreement removed “significant legacy legal risk” and avoided “costs and uncertainty associated with continued investigations and litigation.” The firm said it stands behind the integrity of its ratings and methodologies

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