Connecticut will receive $36 million as part of a multistate settlement reached with Standard & Poor’s Financial Services LLC that resolves allegations S&P misled investors.
State Attorney General George Jepsen made the announcement Tuesday. The money coming to Connecticut will go to the general fund and is part of a larger $1.4 billion S&P is paying to the U.S. Department of Justice, 18 states and the District of Columbia.
The government and states claim S&P misled investors when the rating agency rated structured finance securities leading up to the 2008 financial crisis. Connecticut has been trying to hold S&P accountable for its role in the economic crash for the past five years, according to Jepsen.
S&P was accused of letting its ratings be influenced by the desire to earn large fees from investment bank clients. The structured finance securities at issue were backed by subprime mortgages, which played a key role in the financial crisis.
“In effect, S&P considered its own business interests, contrary to its public statements that its ratings were objective,” Jepsen said in a statement. “These actions had a very direct and serious impact on our national economy that is still being felt in communities and households in Connecticut and across our country.”
S&P officials did not respond to request for comment.