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S&P found guilty of misleading investors
Thought this would be an enjoyable diversion this morning.
http://edition.cnn.com/2012/11/05/business/sp-guilt-misleading-investors/index.html
In a damning verdict the Federal Court of Australia ruled S&P and ABN Amro had "deceived" and "misled" 12 local councils that bought triple-A rated constant proportion debt obligations (CPDOs) from an intermediary in 2006.
The court said a "reasonably competent" ratings agency could not have assigned the securities, which were described as "grotesquely complicated", a triple A rating. S&P and ABN's wholesale banking arm, which is now owned by RBS, also published information and statements that were either "false" or involved "negligent misrepresentations", Justice Jayne Jagot found.
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