Calpers sues raters over SIVs, reports New York Times

The New York Times reports that Calpers is suing Moody’s, Standard & Poor’s and Fitch Ratings over their triple A ratings on three SIVs bought by the Californian pension giant. The article says that Calpers is suing the rating agencies in California’s superior court in San Francisco for making “negligent misrepresentation” to the firm.

Calpers also accuses the agencies of having flawed methodologies and conflicts of interests in rating the SIV notes. It is seeking an unspecified amount of damages, notes the article.

Calpers invested $1.3 billion in the three SIVs, which the article says were managed by Sigma, Cheyne Capital and Stanfield Capital. Presumably the vehicles in question are Sigma Finance (managed by Gordian Knot) Cheyne Finance and Stanfield’s Victoria Finance.

See original article.