Landmark case in Australia rules against S&P for “misleading and deceptive” products

Tuesday, November 6th 2012 - 00:40 UTC

Full article 8 comments

Standard & Poor's lost a landmark case in Australia over top-flight ratings given to financial products that collapsed in the build-up to the 2008 global economic crisis. The Federal Court of Australia on Monday ruled that S&P AAA rating of constant proportion debt obligation notes created by banking giant ABN AMRO and sold to the councils of 13 Australian towns had been “misleading and deceptive”. Read full article

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ptolemy
Interesting story. More interesting is what it will all lead to,..mediocrity? So, will everyone now take a agency like S&P to court if they don't like the ratings? By the time you are out of court the rating won't matter anymore. What a new can of worms.
Nov 06th, 2012 - 01:05 am - Link - Report abuse 0
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jkw
S&P recently gave its unsolicited rating (-B) to Argentina as part of a financial gangbang if you will....It would seem that like a petulant child, it lashes out when thwarted. Watch out my friends down under. Watch out.
Nov 06th, 2012 - 04:27 am - Link - Report abuse 0
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Guzz
Told you?
Nov 06th, 2012 - 05:58 am - Link - Report abuse 0
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ptolemy
@2
”...unsolicited rating (-B) to Argentina as part of a financial gangbang,....”

Yes, a rude analogy,. and mine: Argentina shouldn't spread her legs so easily.
Nov 06th, 2012 - 03:04 pm - Link - Report abuse 0
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Yuleno
It proves that be it knowingly or inadvertently a rating agency can get it wrong.There are plenty on this site that don't think so.Does the decision in this case allow for not just the actual loss but the potential loss.A rating agency can suggest what the potential loss was.Is there something wrong with that?
Nov 06th, 2012 - 07:49 pm - Link - Report abuse 0
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Guzz
Amazing that a story that affects national economies massively and in the end, so many people, attracts so few comments from the self-proclaimed knights of justice of the brits. How was it he said? Never before has so few done so little for so many... Or something like that...
Nov 06th, 2012 - 10:01 pm - Link - Report abuse 0
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Yuleno
We await the unfortunate yankeeboy and capt poppy to enlighten us on the insignificance of this case.But first they will have to get used to the fact that their man Romney is,like themselves,a loser.
Nov 07th, 2012 - 12:15 pm - Link - Report abuse 0
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British_Kirchnerist
So the ratings agencies, loved by Cameron and hated by Cristina, are a bunch of crook, who saw that one coming?! =)
Nov 09th, 2012 - 11:59 am - Link - Report abuse 0
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