Friday, 13 June 2014

Australia: Federal Court upholds liability of credit rating agency

The Federal Court of Australia (Full Court) gave judgment several days ago in ABN AMRO Bank NV v Bathurst Regional Council [2014] FCAFC 65. The judgment will be of interest beyond Australia because of the issues before the court, including the liability of credit rating agencies. The court upheld an earlier decision ([2012] FCA 1200) imposing liability on Standard and Poors for a flawed triple AAA rating (the highest it could assign) it had given to a financial instrument issued by ABN Amro.

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