For the second time in as many weeks, Connecticut Attorney General Richard Blumenthal has fired shots aimed right at Wall Street. First he filed suit against the big three ratings agencies, Fitch, S&P, and Moody's, alleging the three gave artifically low credit ratings to states and municipalities, hence forcing public operations like school districts to purchase unnecessary bond insurance. And today? He fired right at an already wounded target, Countrywide Financial. In a "First on Fox Business" interview, Blumenthal said he has the evidence that proves CFC bullied and conned customers into signing deceptive and unaffordable loans.Countrywide no longer exists as a stand-alone company; it was bought by Bank of America (BAC) . For its part, BofA says it's looking into the allegations.It would be easyto take a swipe at BAC too, butBlumenthal told FoxBusiness they WILL NOT SUE BANK OF AMERICA.
Understand that when a lot of people lose a lot of money, the lawyers and attorneys general get right on the warpath. But Blumenthal says he has the evidence and told us that in the case of the big three ratings agencies he's got an ongoing anti-trustinvestigationhe's working. Stay tuned. Here's what he said: