California Approaches Court for Enforcing Subpoena Against Moody’s

Jerry Brown, the Attorney General of California, has said that he will take Moody’s Investment Service Inc., a New York based credit rating agency, to Court as the company is refusing to comply with the state subpoena.

The subpoena asks for certain documents needed for an inquiry into the company’s evaluation of mortgage backed securities, which were seen as a key reason behind the financial crisis. It is suspected that the company indirectly had a role to play in the crisis and the subsequent economic recession. [Read more…]

Lack of Money May Bring Reprieve for Prisoners in California

Due to a severe financial crisis, the California government is struggling to even provide for the basic needs of the prisoners.

Currently more than 10% of the state budget goes to its penal system, which amounts to about $8 billion. This is much more that what the state spends on higher education. In spite of this, many prisoners have been sleeping in a gym. A jail near Los Angeles houses double the number of prisoners it was created to hold. To deal with the situation, Governor Arnold Schwarzenegger has initiated serious plans to reduce the burden of prisoners on the jails so that the state can improve its financial situation. [Read more…]