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US: Cities haven’t come close to proving bond collusion

By  |  March 24, 2013
US: Cities haven’t come close to proving bond collusion

Lawyers are looking to have a case filed in 2008 against major bond insurance and credit ratings companies to be dismissed, arguing that the cities – which claim that companies forced various local governments in California to buy unnecessary insurance – do not have enough evidence to sue. Ambac Financial Group and Moody’s Corp. are among the defendants in the antitrust case, filed on behalf of California cities that say the companies colluded to keep credit ratings high, ultimately creating a dual credit rating scheme that “punished” the cities with lower ratings. A lawyer representing Standard & Poors claims the plaintiffs haven’t “come close” to providing enough evidence.

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