http://www.
investmentcontrarians.
com/stock-market/investors-misled-by-ratingagency/982/
Investors Misled by Rating Agency
By Sasha Cekerevac for Investment Contrarians | Nov 9, 2012
In what will most likely be a landmark ruling, Australia’s federal court...
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http://www.
investmentcontrarians.
com/stock-market/investors-misled-by-ratingagency/982/
Investors Misled by Rating Agency
By Sasha Cekerevac for Investment Contrarians | Nov 9, 2012
In what will most likely be a landmark ruling, Australia’s federal court has ruled that one
of the world’s leading credit ratings agencies Standard & Poor’s (S&P) misled investors
by issuing a AAA rating, its safest rating, to securities that were extremely complex and
risky, and that ultimately lost most of their value.
One of the biggest problems following the crash is that investor sentiment has soured on
the financial industry.
Many people have the market view that the game has been rigged
against the retail investor.
During the bubble prior to the crash, rating agencies like S&P
continually slapped AAA on risky investments.
The entire system was built on generating
revenue and commissions by packaging products that could be sold to people who should
not have been buying them in the first place.
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