US Government filed a lawsuit against S&P.

The ratings agencies have not quite found the going good ever since the sub-prime crisis blew up. And it looks like there is more trouble in store for them. As per reports, the US Government has now filed a US$ 5 bn lawsuit against S&P's and has accused it of defrauding investors. We don't quite understand why only S&P's has been targeted when the other two ratings firms were as much guilty if not more. Well, we believe that the conduct of ratings agencies has been anything but fair. And it goes to the very heart of the US financial crisis. Thus, the lawsuit, despite being a case of too little, too late, does have its heart in the right place. But we doubt anything substantial will come out of it. For nothing has changed to make us believe that the entire ratings process has become saner. The conflict of interest still persist s and unless this changes, investors will have no other option but to do their own research rather than take the view of ratings agencies at face value.