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Civil Liability of Rating Agencies

The Dodd-Frank Act greatly increases rating agencies' potential liability under the securities laws. One impact is almost certain: In the future, rating agencies are unlikely to fare as well in the courts as they have in the past.

31 minute read October 26, 2010 at 10:42 AM
By
Jonathan S. Sack And Kefira R. Wilderman
Civil Liability of Rating Agencies

In the wake of the financial crisis, credit rating agencies have been named in dozens of lawsuits by investors seeking to recover on the huge losses suffered when the subprime market collapsed.

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