EFE | Washington

The U.S. Justice Department and Standard & Poor's credit rating agency are on the verge of reaching a $1.37 billion settlement deal over claims that the latter knowingly inflated its rating of risky mortgage investments that helped spark the 2008 financial crisis, The Wall Street Journal reported Wednesday.

Although the agreement remains to be finalized, the fine to be paid by S&P would include $637 million that would go to the Justice Department and $100 million to the state of California, while another dozen or so states also would receive compensation, the newspaper said citing sources familiar with the negotiations.

In 2013, the U.S. government filed a civil lawsuit against Standard & Poor's claiming it knowingly deceived investors about the quality of its mortgag
In 2013, the U.S. government filed a civil lawsuit against Standard & Poor's claiming it knowingly deceived investors about the quality of its mortgage investments in the years prior to the 2008 financial crisis. EFE/File
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