Credit Rating Agencies and the first Amendment

Part of the reason that we are in the economic mess that we are in is because credit ratings agencies gave wildly overly optimistic assessments of the soundness of corporations and their bonds, and investors relied on those ratings when they made their investment decisions. Enron was given high ratings just 4 days before they went bankrupt.

The SEC and Congress want to regulate the Credit ratings agencies and investors are suing them for their incompetence. But the agencies have been able to stay out of hot water because their lawyers have made slick use of the First Amendment.

Before watching this video, read this article from the Huffington Post.

http://www.huffingtonpost.com/2009/10/28/under-attack-credit-rater_n_337712.html

Then watch this video where Floyd Abrahms uses the First Amendment to defend the credit ratings agencies.

http://www.youtube.com/watch?v=njFqvTWhhX4

Category:

News & Politics

Tags:

• Credit
• rating
• agencies
• Standard
• and
• Poors
• Fitch
• Moodys
• opinion
• First
• Amendment
• Floyd
• Abrahms

[rollinbob1]

agreed! there is an appropriate time to claim freedom of speech. if someone comes to you for your profesional opinion you need to make that opinion on facts. and when your wrong take the fall.

[silverfox2358]

A better example would be the final solution that anal hitler saying the final solution was just an opinion blah blah blah

[stealthbadger]

Look up the Nike v. Kasky case before the Supreme Court - Nike was suing for the right to lie under the 1st Amendment. @.x;

[dacherx]

Expert opinion sold to general public as a commerical product is not "free speech" is is commerical speech, a commercial product. Companies aren't people anyway and shouldn't be protected as such.

[fyphfoko]

five twinkly stars. they twinkle in my opinion

and your videos remind me of live! tv, with their chello news and bouncy weather ;p

[chupamiubre]

The problem is they usually are not cooking the books. Enron was a special case but most places are not that good at it if they do it at all.