Australian Federal Court upheld a landmark appeal against rating agency S&P

Posted: June 6, 2014 in Uncategorized

Well, this is very good news for one of oldest headache.

In my opinion most of the failings (as Sub Prime, but also the various mortgage brokers) where simply due to the conflict of interest in remunerations that the research houses had in approving the product.

Now the Federal Court in Australia rejected an appeal and now the New South Wales Council can reclaim the lost AUD 30 millions.

What is most interesting is that the IMF is also looking at the case, as a potential guide-case. The worldwide claims can be as high as US$200 billion. That would be an extinction event for the main research houses involved

 

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