Tuesday, 21 April 2015
Last updated 5 min ago
Jul 11 2013 | 11:31am ET
The liquidators of two Bear Stearns hedge funds that were among the earliest victims of the credit crisis have sued the three major credit-rating agencies.
The Bear Stearns High-Grade Structured Credit Fund and a more highly-levered sister fund collapsed in 2007, costing investors some $1.6 billion and contributing to the bank's eventual fall. The funds' managers were acquitted of misleading investors and last year settled allegations leveled by the Securities and Exchange Commission.
Now, the fund's liquidators say much of the misleading was done by Fitch Ratings, Moody's Investors Service and Standard & Poor's Ratings Services, which "intentionally and knowingly misrepresented information concerning their independence, the accuracy of their ratings, the quality of their models, and the extent of their surveillance" of the mortgage-backed securities that the hedge funds bought.
Tuesday's court filing was not the liquidators' full complaint, and did not include details of their allegations. The lawsuit, brought in New York state court in Manhattan, appears designed to beat a six-year statute of limitations; the ratings agencies began to downgrade the funds' holdings in July 2007.
Both Fitch and S&P said the allegations were "without merit."
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…