CalPERS sues credit-rating firms over $1 billion in investment losses

The L.A. Times reports:

California's giant public pension fund is suing the nation's three top bond credit-rating companies for issuing "wildly inaccurate" rankings on investments that it said cost pensioners "perhaps more than $1 billion."

The California Public Employees' Retirement System on Wednesday drew plaudits and skepticism for raising legal questions about the firms' gold-plated AAA rankings for investment funds that collapsed in 2007 and 2008.

You'll want to read the whole thing. We wonder if CalPERS is going to be sued for making unrealistic assumptions on California real estate?