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Australia to take Standard and Poor's fight to Europe

This is a response to Templeton's post about China being the cause of all the U.S.A's ills. This is one of the reasons your country's in so much shit Simpleton, has nothing to do with the China. The U.S. Government helped tank Europe, quit blaming everyone else.

IMF Australia, a listed company that funds large legal claims, won a world-first lawsuit against the ratings agency this week on behalf of 13 towns that lost US$16.5 million on AAA-rated synthetic derivatives called CPDOs.

The Federal Court ruled that S&P's assessment of the "grotesquely complicated" CPDOs, or constant proportion debt obligation notes, as "extremely strong" had been "misleading and deceptive".

It was the first time a ratings agency had stood trial over complex debt derivative products seen as a major driver of the global meltdown in late 2008, and IMF Australia has described the ruling as a key precedent for future actions.

IMF Australia executive director John Walker said he would travel to Europe at the weekend to meet with investors from Britain, France, Germany and the Netherlands to discuss a similar lawsuit over CPDOs.

"We are going to seek to leverage the (Australian) decision," Walker told The Australian newspaper.

"I am going to speak with people in Germany and France and the UK and the Netherlands about their investment in CPDOs to see whether they are interested in joining together in a claim... to recover some compensation."

Walker said CPDOs worth between 1.5-2 billion euros ($1.84-2.45 billion) were issued in Europe in the three years before the crash.

They were known as Castle Finance or Chess notes and he said IMF Australia was exploring legal claims in Europe against S&P and the Royal Bank of Scotland (RBS), which took over the Dutch bank that issued the products, ABN AMRO.

"IMF has retained lawyers to investigate launching similar claims in Europe against S&P and RBS on behalf of major European banks and pension funds if there is sufficient demand to make proceedings commercially viable," Walker said.

"IMF is currently determining which institutions in Europe have valid claims; that is, where the rating was a material factor in the decision to invest."

The Federal Court ruled that S&P could only have rated the CPDO AAA on the basis "of an unreasonable combination of unreasonably optimistic inputs but not otherwise" and had failed to act with reasonable care.

S&P has rejected the decision and plans to appeal.


Added: Nov-7-2012 Occurred On: Nov-7-2012
By: DirtyUncleBerty
World News
Tags: Australia, to, take, S&P, fight, to, Europe
Location: Australia (load item map)
Views: 1594 | Comments: 13 | Votes: 1 | Favorites: 0 | Shared: 0 | Updates: 0 | Times used in channels: 2
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