CalPERS receives $301 million in damages
04 February 2015 Sacramento
Image: Shutterstock
The California Public Employees’ Retirement System (CalPERS) is poised to receive approximately $301 million in damages from Standard & Poor's (S&P) and parent company McGraw-Hill Financial, as a result of settlements in cases against S&P that stemmed from its rating of mortgage-backed and other securities prior to the financial crisis.
The settlement from a suit filed by the US Department of Justice and 20 State Attorneys General, announced by US Attorney General Eric Holder and California Attorney General Kamala Harris, will send approximately $176 million to CalPERS.
A separate settlement of CalPERS's individual suit will give the fund approximately $125 million.
"This money belongs to our members and will be put back to work to ensure their long-term retirement security," said Anne Stausboll, CEO of CalPERS.
"We thank the Attorney General Kamala Harris and the US Department of Justice, as well as our own legal team, for their work on these cases."
This settlement resolves charges against S&P in CalPERS's individual suit for losses it sustained from investments in three structured investment vehicles that also collapsed during the financial crisis.
However, it does not resolve the same charges against Moody's Investors Service in that case.
CalPERS has recovered approximately $900 million, to date, from settlements related to investment losses sustained during the financial crisis.
The settlement from a suit filed by the US Department of Justice and 20 State Attorneys General, announced by US Attorney General Eric Holder and California Attorney General Kamala Harris, will send approximately $176 million to CalPERS.
A separate settlement of CalPERS's individual suit will give the fund approximately $125 million.
"This money belongs to our members and will be put back to work to ensure their long-term retirement security," said Anne Stausboll, CEO of CalPERS.
"We thank the Attorney General Kamala Harris and the US Department of Justice, as well as our own legal team, for their work on these cases."
This settlement resolves charges against S&P in CalPERS's individual suit for losses it sustained from investments in three structured investment vehicles that also collapsed during the financial crisis.
However, it does not resolve the same charges against Moody's Investors Service in that case.
CalPERS has recovered approximately $900 million, to date, from settlements related to investment losses sustained during the financial crisis.
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