On January 13, 2017, Moody’s Investors Service, Inc., Moody’s Analytics, Inc., and their parent, Moody’s Corporation, agreed to pay nearly $864 million to settle allegations relating to Moody’s role in providing credit ratings for Residential Mortgage-Backed Securities and Collateralized Debt Obligations.  The settlement resolves an investigation by the Justice Department’s Consumer Protection Branch and the U.S. Attorney’s Office for the District of New Jersey, as well as investigations conducted by 21 states and the District of Columbia pursuant to state law.  The federal government will receive $437.5 million as a federal civil penalty and the remainder will be distributed among the states.  The settlement also included a Statement of Facts, in which Moody’s acknowledges several aspects of their conduct that was the basis of the settlement.  The settlement requires Moody’s to improve its compliance program through making a number of commitments, including: (1) separating it’s commercial and credit rating functions, (2) having independent review and approval of changes to rating methodologies, (3) ensure that certain personnel are not compensated based on the company’s financial performance, (4) deploying new technological systems for documenting rating procedures, and (5) providing certification of compliance by Moody’s President/CEO for at least five years. DOJ Press Release