Ratings agency Standard & Poor’s is appealing a decision made by a New South Wales court that found it liable for millions in losses suffered by local councils that invested in AAA-rated products during the GFC.
And its lawyers, according to The Australian, have come out with an interesting analogy for the firm’s services that involves buying a car, and the television show Top Gear.
S & P’s lawyer told the Federal Court in Sydney that blaming the ratings agency is similar to buying a car and saying its not my fault when you’re unhappy because “Top Gear gave it a good review”.
“You cannot seriously say, and not be negligent to say, ‘I’ll order the car and it will be good because it is triple A rated’? Triple A what?” barrister Steven Finch said.
“Triple A does not mean anything hanging out there as a concept.”
As The Australian points out, the case is being watched around the world as many investors still reeling from losses incurred during the GFC look to point the finger at the agencies and institutions who contributed to the eventual meltdown.
There’s more here.