NEW YORK – Ratings company Standard & Poor's will pay $77 million to settle with the U.S. government and two states to resolve an investigation into mortgage-backed securities.
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The company says that it has also settled with the attorneys general of New York and Massachusetts to resolve investigations into the same issue.
The Securities and Exchange Commission had accused S&P of fraudulent misconduct in its rating of some mortgage-backed securities.
Under the terms of the settlement announced Wednesday, S&P will pay the Securities and Exchange Commission $58 million and $19 million to the states of New York and Massachusetts.
S&P also agreed to take a "time out" from issuing rating on certain types of mortgage-backed securities for a year, the statement said.