Pension Money Arrives!
- Standard & Poor's Rating Services' tab is $1.38 billion — including $52.5 million for Illinois — to resolve long-standing allegations by federal and state authorities that the firm misled investors in the run-up to 2008's financial collapse.
The dollar figure attached to the pact with the world's biggest ratings firm, announced Tuesday by the Justice Department and 20 state attorneys general, is larger than the company's profits earned from rating mortgage-backed securities from 2002 to 2007.
In Illinois, the funds will go toward restoring the losses on the investments by Illinois' pension system, Illinois Attorney General Lisa Madigan said.
The settlement comes as reports surface that the Justice Department has been meeting with Moody's Investors Service over similar allegations.
Gee, another $52 million from Moody's and that'll be a cool $100 million - one-tenth-of-one-percent of the current $80 billion state pension deficit.