Crisis Sparks Call For Increased Credit Rating Liability

Law360, New York (May 14, 2009, 12:00 AM EDT) -- Under fire from critics who say credit rating agencies fanned the flames of the subprime crisis, the industry that has long been able to block lawsuits by using the First Amendment as a shield is now facing the prospect of increased legal liability.

Critics say the credit rating industry did not do enough to alert investors about risky mortgage backed securities – and tagged some with improperly high ratings.

While the industry has been widely disparaged in the wake of the subprime mortgage meltdown, credit rating...
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