... still, isn't it somewhat shocking that it took SIX YEARS for this to occur? S&P expects US lawsuit over its mortgage ratings
According to a report in the New York Times, the lawsuit will likely be brought this week after settlement talks between the Justice Department and S&P broke down last week. The talks collapsed over federal authorities' insistence that a settlement involve at least $1 billion, the Times reported.
I think that this is the "report in the New York Times": U.S. and States Prepare to Sue S.&P. Over Mortgage Ratings
The case is focusing on about 30 collateralized debt obligations, an exotic type of mortgage security. According to S&P, the mortgage securities were created in 2007 at the height of the housing boom.