S&P Attorney Defends Ratings Agency Stating There Was No Fraud

“Standard & Poor’s didn’t commit fraud or intentional misconduct, according to Floyd
Abrams, the firm’s attorney.

The government alleges that S&P engaged in a scheme to defraud investors in structured
financial products, claiming its ratings misrepresented the risks involved. The Department
of Justice claims S&P issued ratings on complex securities related to the mortgage industry, including residential mortgage backed securities and collateralized debt obligations (CDOs), that it knew were inaccurate and continued to do so.

“The basic allegation is false,” Abrams, a partner at Cahill Gordon & Reindel, told Newsmax TV in an exclusive interview. “There was no fraud. There was no intentional misconduct.” …”

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