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THE GOVERNMENT'S ROLE: The Justice Department is the government arm that filed the lawsuit. The government has an obligation to make investing fair and safe. But it's been accused of failing to aggressively pursue wrongdoing related to the financial crisis. It has been under pressure to show it can bring and win lawsuits. The lawsuit does not involve any criminal allegations. Critics have long complained about the government's failure to bring criminal charges against any major Wall Street players involved in the financial crisis. Criminal charges would require a higher burden of proof. THE SIGNIFICANCE: This is the first time the federal government has filed a lawsuit against a major credit rating agency over actions related to the financial crisis. S&P is also known as the rating agency that downgraded long-term U.S. debt in 2011. THE DEFENSE: S&P denies wrongdoing and says it can't be blamed for failing to predict the financial crisis. It notes that the government was also saying as late as 2007 that the subprime mortgage crisis would likely be contained. In addition, S&P says the lawsuit has taken its employees' emails out of context. S&P says it "deeply regret(s)" that some investments didn't perform as well as expected. But it adds, "20/20 hindsight is no basis to take legal action against the good-faith opinions of professionals."
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