- Associated Press - Tuesday, February 3, 2015

DES MOINES, Iowa (AP) - Standard & Poor’s is paying the state of Iowa $21.5 million as part of a larger settlement of a lawsuit that includes 19 states, the federal government and the District of Columbia.

The lawsuit alleges the company inflated ratings of risky mortgage investments that helped trigger the financial crisis.

The U.S. Justice Department in announcing the settlement Tuesday says S&P; admits that it allowed “the pursuit of profits to bias its ratings.”

Iowa Attorney General Tom Miller says $20 million of Iowa’s settlement goes to public employee retirement funds serving state workers, teachers, peace officers, city fire and police employees and the state judicial system.

The funds suffered substantial losses when securities with inflated ratings were downgraded in the 2008 financial crisis.

The Iowa Insurance Division gets $1 million.

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