The rating agencies have been among the targets in many of
the lawsuits filed as part of the subprime-related litigation wave. By and
large, the rating agencies have been successful in knocking out these cases in
the early stages, particularly the
lawsuits seeking to hold them liable as "underwriters"...
Credit rating agencies, and in particular, nationally recognized statistical rating organizations ("NRSRO"), have been thought by many to be at the center of much of what went on with the market crisis, particularly in the area of structured products. The agencies have come under significant...
Dodd-Frank focuses on the structure of credit rating
agencies, requiring revisions and imposing other requirements in an effort to
resolve the conflicts of interest and other difficulties many believe were at
the center of the market crisis. The article on Monday focused on the new SEC office which...
In a January 12, 2010 opinion ( here ) in a subprime-related securities suit involving
Goldman Sachs-issued mortgage pass-through certificates, Southern District of
New York Judge Harold Baer, Jr. granted the rating agency defendants'
motion to dismiss on the grounds that they are not "underwriters"...
Michael Lewis continues his around the world tour of the
2008 financial crisis from the view of Germany: It's
the Economy, Dummkopf! . The story in the September issue of Vanity Fair
seems to be all about excrement. We heard that there were big chunks of the
mortgage securities business that...
The SEC examined all 10 firms registered Nationally
Recognized Statistical Rating Organization (.pdf 23 pages) and found all 10
had "apparent failures". The SEC has requested remediation plans from each of
the agencies within 30 days and is continuing its investigation.
The issues found...
Credit rating agencies can have a significant impact on
the on the market place. The rating assigned by the agencies to securities can
impact things such as the price, interest rate and marketability. Yet the inner
workings of these agencies have traditionally been shielded from view and
Jesse Eisinger posted a very good piece on the SEC and
ratings agencies today ( SEC
keeps the Ratings Game Rigged ). He writes about the Egan-Jones case,
"This is your S.E.C., folks. It courageously assails tiny firms, and at
the pace of a three-toed sloth. And when it goes after its prey, it's...