There had been talks of a settlement as recently as the week of January 28 but talks broke down after the Justice Department said it would seek a settlement in excess of 10 figures.
Such a settlement would wipe out the profits of McGraw Hill, Standard & Poors’ parent company, for an entire year.
The Justice Department threatened to bring a criminal case during settlement negotiations. But the case ultimately is expected to be on civil grounds.
Reportedly, prosecutors have discovered a plethora of emails incriminating Standard & Poors.
The agency says the suit, if the government decides to bring it and for which it has received notice, would be baseless.
It says it downgraded plenty of mortgage-backed investments, even during the two years leading up to the crisis.
Standard & Poors says its actions were not motivated by profit and that they were issued in good faith.

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