(HARTFORD,Conn./CBS Connecticut) –  Connecticut Attorney General George Jepsen  announced Friday that Connecticut, the U.S. Justice Department ,20 other states and the District of Columbia  have reached a settlement agreement with Moody’s  resolving allegations the credit  rating agency   gave inflated  ratings to risky mortgage investments in the years leading up to  the financial crisis.

The settlement calls for $437.5 million to go to the Justice Department and $426.3 million to be divided among the states and  the District of  Columbia.Connecticut’s share is $31,519,461 million,which will go into the state’s general fund.

Jepsen says the settlement  culminates a 7 year effort led by  Connecticut  to hold Moody’s responsible  for its role in the 2008  financial crisis.

Moody’s along with two other major  credit rating agencies, Standard and Poor’s and Fitch  were  criticized for   giving low-risk ratings   to  risky mortgage securities, while reaping lucrative fees.


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