Conn. AG to sue rating agencies for deception

NEW YORK (Reuters) - Connecticut Attorney General Richard Blumenthal said on Wednesday he will take legal action against the three major rating agencies, which he accused of "deceptive and unfair practices." Blumenthal, who previously disclosed a wide-ranging investigation into the agencies, said the targets include Moody's Corp, McGraw-Hill Cos Inc's Standard & Poor's and Fimalac's Fitch. Blumenthal will hold a press conference at noon EDT to discuss the findings, according to a press release. He said the rating agencies' actions cost taxpayers "millions of dollars." Blumenthal in January said his office had issued subpoenas to all major rating agencies and bond insurers as part of an investigation into illegal practices surrounding the issuance of municipal bonds. He said conflicts of interest among the various players... [read full story]