Responsibility of the Raters - S&P misled investors, Australian court finds

Standard & Poor's misled investors by awarding its highest rating to a complex derivative product that collapsed in value less than two years after it was created by ABN Amro's wholesale banking division, an Australian judge has ruled, in a landmark case that could pave the way for legal action in Europe.

In a damning verdict, the Federal Court of Australia ruled S&P and ABN Amro had "deceived" and "misled" 12 local councils that bought triple-A rated constant proportion debt obligations (CPDOs) from an intermediary in 2006 ... READ MORE . The precedence established with this decision will be interesting to follow.

Released by the Financial Times - 6 November 2012