Skip to main content

No Legal or Official Reason to Trust the Rating Agencies

I had posted this on my facebook wall some time ago, which is not easy to search through nor is it well-suited for blog-size posts. Hence reproducing here as the information is eye-opening.

“they’re winning because this is not a level playing field.”


The Ratings agencies (Standard & Poor’s, Moody’s and Fitch):

1. have NO duty to be correct.
...'the companies didn’t owe ... a “duty” — a legal obligation that could form the basis of a negligence claim'

2. have NO shared responsibility.
'judges have rejected the idea that the rating agencies worked so closely with the investment banks that they were essentially co-underwriters'

3. are NOT experts
'a regulation exempts rating agencies from the definition of “experts” who can be sued'

4. have NO conflict of interest - because you already know about it!
'it has been around so long and is so widely known that it isn’t a cause of action'

5. are merely expressing OPINIONS
'their grades are just opinions about the future'

6. are protected by the First Amendment
"and therefore entitled to robust First Amendment protections, like those afforded journalists'


[Originally posted on my personal blog at muralikd.blogspot.com, September 18, 2010]

Comments

Popular posts from this blog

It's a slow economy- Let's talk about handshakes & picking up chicks

You know it's a rough economy when Guy Kawasaki is tweeting about picking up chicks and TechCrunch is blogging about handshakes & social etiquette and beating up dead horses.

But shouldn't these guys be talking about my friend's company that just got funded to do DNA computation in the cloud - or something like that?

[Originally posted on my personal blog at muralikd.blogspot.com, May 09, 2009]

Criticism of Obama is (not) based on Racism

Stephen Colbert said it best:

"Any time a racist criticizes the president someone cries racism"

"What better way to prove you're not a racist than by highlighting a fellow critic's race"

"I wish more African Americans were like the President - raised by white people"

"Before the next time you accuse the president of having a secret plan of taking white people's money and giving it to black people or broadcast chuck and jive imitations of African American leaders, just put on a little blackwashing"

Amen!

[Originally posted on my personal blog at muralikd.blogspot.com, September 25, 2009]

Hanky Panky, Social Norms and Brainwashing by Marketing

As I wiped my hands on my handkerchief after I stepped out of the restroom, my friend's teenage daughter turned to me and said, "that right there is a major turnoff for women, if you ever plan to date women, don't ever use it". Startled and a little puzzled, I asked her why she would say such a thing about an object of hygiene. She said, "Have you heard of Kleenex?" And what if I don't have one handy when I have to wipe my hands or face or worse, have to sneeze or blow my nose? "Use your hands and wash them later", she replied without hesitation, and added, the only person she knew who uses that (referring to my guilty hanky) is her grandma!

Her reply was eye-opening - she was hinting at social cluelessness defined by a generation gap, but it also gave me the missing clue to a similar comment on TechCrunch last week by someone who said he blows his nose into his elbow joint! (Remember that ladies, the next time someone holds his elbow out for…