Published Tuesday, Feb. 5, 2013 | 9:06 a.m.
Updated Tuesday, Feb. 5, 2013 | 1:08 p.m.
WASHINGTON — The U.S. government says Standard & Poor's knowingly inflated its ratings on risky mortgage investments that helped trigger the 2008 financial crisis. The credit rating agency gave high marks to mortgage-backed securities because it wanted to earn more business from the banks that issued the investments, the Justice Department alleges in civil charges filed in federal court in Los Angeles. The government is demanding that S&P to pay at least $5 billion in penalties. The case is the government's first major action against one of the credit rating agencies that stamped their approval on Wall Street's soon-to-implode mortgage ...
Christina Rexrode reported from New York. AP writer Pete Yost in Washington and AP Business Writer Bree Fowler in New York contributed to this report.