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S&P under threat of legal action over bond ratings

Ratings agency Standard & Poor’s could face legal action over the role it played in the financial crisis.

According to reports, staff at the Securities and Exchange Commission, the US regulator, have recommended a lawsuit be brought against S&P over a mortgage-backed security it rated in 2007.

The SEC is targeting a collaterised debit obligation – a structured asset-backed security made up of bonds and loans – called Delphinus CDO 2007-1, which S&P gave a top grade. The $1.6bn CDO was then downgraded six months later.

S&P, along with rivals Moody’s and Fitch Ratings, has come under fire from lawmakers and investors for failing to identify risks in the run-up to the financial crisis.


Kames Capital launches absolute return bond fund

Kames Capital absolute return fund launches targeting Libor plus 2 to 3 per cent net of fees. Jointly managed by bond managers Colin Finlayson and Stephen Snowden, the fund aims to provide investors with positive total returns over a rolling three to five year period, regardless of market conditions. Snowden says: “We went for a […]

FTSE 100 rises following early losses

The FTSE 100 has bounced back into positive territory after falling below 5,000 in early trades on Monday, At 10.28am, the blue-chip index currently stands at 5114.73, a rise of almost 1 per cent, with banks leading the bounce back. Shares have also risen across Europe with the German Dax up 2.9 per cent and […]


IFP attacks FSA’s ‘outrageous sweeping statements’ on simplified advice

The Institute of Financial Planning has hit out at the regulator’s “outrageous sweeping statements” about who should access simplified advice and questioned whether the regime will be profitable for firms. In its simplified advice guidance consultation, published last week, the FSA says firms should not recommend retail investment products through simplified advice if a client […]

Budget summary – March 2016

This week’s Budget looked as if it would be a difficult one for the Chancellor, with disappointing economic numbers and the need to avoid ruffling feathers ahead of June’s in/out referendum. Nevertheless, Mr Osborne did spring a few surprises, including some tax reductions. So how does this budget affect you? If you are – or […]


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There are 2 comments at the moment, we would love to hear your opinion too.

  1. Very Rich, to say the least. S&P were virtually endorsed by the SEC prior to the meltdown. This is purely a method of intimidation to ensure further downgrades are not made.

  2. Let’s all blame so and so today, lets launch legal proceedings, let us all go into battle but individually remain blameless. Who wins! Just lawyers. Who loses? – yes the claimant, the consumer, the investor, the adviser, the product provider, the company, the regulator and finally Governments. So far we have only reached the product providers, so Investment Companies, the regulator and eventually Governments will soon succumb to the onslaught of legal (it’s not fault – I need compensation) challenge.

    Time to rethink compensation culture and if a law firm fails to win a case, they become personally liable for the claim. Unless they are 100% sure of winning; claim dismissed.

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