Financial Times FT.com

Rating agencies could be liable for losses

By Saskia Scholtes in New York

Published: May 10 2007 22:03 | Last updated: May 10 2007 23:53

Credit rating agencies could be held liable for investor losses on complex securities backed by risky US subprime mortgages and other assets, according to a study.

Any such liability could dramatically change the rating business by upsetting the agencies’ traditional position that their ratings are simply opinions covered by constitutional protections for free speech.

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