Wednesday, March 12, 2014

Judge may allow discovery in McGraw Hill case

It's beginning to look as if the trial judge will allow McGraw Hill to seek information from former Treasury Secretary Timothy Geithner it has requested. McGraw Hill has subpoenaed Treasury Department email. Three days after McGraw Hill subsidy Standard and Poor downgraded US debt Geithner called the CEO of McGraw Hill stating that "there would be consequences" for the downgrade.
At a hearing Tuesday in Santa Ana, U.S. District Judge David Carter said he's concerned about why Geithner would have made the call to McGraw Hill's chairman three days after the downgrade, other than for it to have a "chilling effect."
"Why is Geithner calling?" Carter asked. "What is he doing on the phone?"
The judge didn't issue a final ruling on S&P's request before taking a recess.


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