The attorney general of Ohio sued the country’s largest credit rating agencies on Friday, alleging that they had cost state retirement and funds some $457 million by approving high-risk Wall Street securities that went bust in the financial collapse. The case could test whether the agencies’ ratings are constitutionally protected as a form of free speech.This could be fun to watch.
The lawsuit asserts that Moody’s, Standard & Poor’s and Fitch were in league with the banks and other issuers, helping to design an assortment of exotic financial instruments that led to a disastrous bubble in the housing market.
Pass the popcorn.
(H/T)
2 comments:
This is a civil suit and the Moody Fitches assert they were giving opinions and can say whatever they want. But what they were saying was flat out fraudulent and they knew it, you would have to be 3 days dead not to know it, so why aren't they in a criminal court?
Civil suits are easier to prove.
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