Attorney General Taking Moody's to Court - NBC Bay Area

Attorney General Taking Moody's to Court

Jerry Brown wants to know why it takes seven months to answer a request for documents



    Attorney General Taking Moody's to Court
    Getty Images
    Jerry Brown is now taking investment ratings firm Moody's to court to get a response to a subpoena.

    California Attorney General Jerry Brown is reportedly taking bond-rating firm Moody's to court in order to force the company to turn over documents Brown had demanded months ago through a subpoena.

    Brown's office had asked Moody's to provide evidence of the firms role in giving good, safe ratings to mortgage-backed securities that ultimately played a role in the country's economic meltdown.

    "The state's subpoena seeks information regarding Moody's decision to give its highest credit ratings to securities backed by risky and toxic mortgage-backed securities," Brown declared in a press release issued by his office but posted to his campaign website.

    Interestingly, the announcement of an unspecified legal action and crusade against the firm just happens to dovetail with Brown's gubernatorial campaign rhetoric that has played to populist resentment towards Wall Street.

    Meanwhile, Insurance Commissioner Steve Poizner -- who's running for the Republican nomination to challenge Brown in the general election -- has asked why the Attorney General's office hasn't pursued action against potentially fraudulent claims by Mercury Insurance Group, which has donated thousands to Brown's campaign.

    Jackson West just loves that photograph.