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View Diary: BREAKING: Standard and Poor's GUILTY, “deceived” and “misled” Investors (91 comments)

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    from Bloomberg on August 20, 2012 re a case filed against S&P and Moody's by investors (see the instant messages):

    The judge said the investors have offered sufficient evidence for a jury to consider whether the ratings were misleading when they were issued. She cited instant messages between two S&P analysts after the Cheyne investment had been issued. The judge said it would be up to a jury to decide whether the messages are discussing Cheyne.

    “That deal is ridiculous,” one analyst said, adding “We should not be rating it.”

    “We rate every deal,” the second analyst replied.

    “It could be structured by cows and we would rate it,” the first analyst replied.

    Scheindlin also said that even if the messages refer to other investments, if such evidence is admissible, a jury could infer from them that S&P was in the practice of issuing ratings it didn’t believe were accurate.

    The case is Abu Dhabi Commercial Bank v. Morgan Stanley & Co., 08-CV-7508, U.S. District Court, Southern District of New York (Manhattan).

    "Let each unique song be sung and the spell of differentiation be broken" - Winter Rabbit

    by cotterperson on Mon Nov 05, 2012 at 08:19:09 AM PST

    [ Parent ]

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