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updated: 2/6/2013 7:48 AM

Madigan commends federal government suing S&P

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Associated Press

Illinois Attorney General Lisa Madigan says the federal lawsuit against Standard & Poor's echoes a lawsuit she's already filed.

Madigan is in Washington as officials detail a lawsuit accusing the debt rating agency of civil fraud for giving high ratings to risky mortgage bonds that helped caused the financial crisis. Several attorneys general joined the lawsuit.

Madigan filed a lawsuit against S&P last year and supported other efforts. She says S&P was a trigger for the destruction of the economy.

The government's complaint contends S&P misled investors by stating its ratings were objective. It says S&P's desire to make money and gain market share caused S&P to ignore risks posed by the investments. The alleged fraud made it possible to sell the investments to banks.

S&P denies wrongdoing.

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