Comments
yourfanat wrote: I am using another tool for Oracle developers - dbForge Studio for Oracle. This IDE has lots of usefull features, among them: oracle designer, code competion and formatter, query builder, debugger, profiler, erxport/import, reports and many others. The latest version supports Oracle 12C. More information here.
Cloud Expo on Google News
SYS-CON.TV
Cloud Expo & Virtualization 2009 East
PLATINUM SPONSORS:
IBM
Smarter Business Solutions Through Dynamic Infrastructure
IBM
Smarter Insights: How the CIO Becomes a Hero Again
Microsoft
Windows Azure
GOLD SPONSORS:
Appsense
Why VDI?
CA
Maximizing the Business Value of Virtualization in Enterprise and Cloud Computing Environments
ExactTarget
Messaging in the Cloud - Email, SMS and Voice
Freedom OSS
Stairway to the Cloud
Sun
Sun's Incubation Platform: Helping Startups Serve the Enterprise
POWER PANELS:
Cloud Computing & Enterprise IT: Cost & Operational Benefits
How and Why is a Flexible IT Infrastructure the Key To the Future?
Click For 2008 West
Event Webcasts
IMF Australia Plaintiffs Win Against Standard & Poor's
S&P Liable for "Misleading and Deceptive" AAA Ratings for the First Time

NEW YORK, Nov. 5, 2012 /PRNewswire/ -- An Australian Court has become the first in the world to find a ratings agency liable for AAA ratings on junk derivatives, paving the way for many new possible claims in the United States and elsewhere.   

(Logo: http://photos.prnewswire.com/prnh/20121105/NY06276LOGO )

Australia's Federal Court yesterday found against Standard & Poor's (S&P) and investment bank ABN AMRO (now Royal Bank of Scotland) in a claim brought by a handful of local government authorities that lost more than $30 million in complex securities that turned to junk when the housing market crashed.

The claim against S&P and ABN AMRO was backed by Australia's largest litigation funder IMF (Australia), parent company of US-based funder Bentham Capital.

The securities - complex synthetic derivatives known as constant proportion debt obligations, or CPDOs - were arranged by ABN AMRO, rated AAA by S&P and sold to local government authorities by an intermediary firm in 2006.  Billions of dollars worth of similar securities packaged by ABN AMRO were sold to institutional investors in the US and Europe over the same period.

Bentham Capital Chief Investment Officer, Ralph Sutton, said the Australian judgment, coupled with new findings that challenge the ratings agencies' First Amendment defense, could spell trouble in US courts for Moody's and S&P, among others.

"A recent ruling from Judge Shira Scheindlin in federal court here in New York suggests the rating agencies are in serious trouble relying on an 'opinion' defense," Mr. Sutton said.

Last August, United States District Judge Shira Scheindlin denied Moody and S&P's motions for summary judgment in a similar action, holding:

While ratings are not objectively measurable statements of fact, neither are they mere puffery or unsupportable statements of belief akin to the opinion that one type of cuisine is preferable to another…If a rating agency knowingly issues a rating that is either unsupported by reasoned analysis or without a factual foundation it is stating a fact-based opinion that it does not believe to be true. Ratings are actionable if (they) both misstated the opinions or beliefs held by the rating agencies and were false or misleading with respect to the underlying subject matter they address.

In the Australian case, 12 local government authorities alleged that ABN AMRO exercised real and substantial influence over S&P's rating process in order to obtain the desired ratings for the securities, known as Rembrandt Notes (sold as Castle Finance or Chess globally).  Plaintiffs also alleged that S&P negligently and misleadingly granted a AAA rating to the CPDOs when a junk bond rating would have been more appropriate.

In her judgment, Australian Federal Court Justice Jayne Jagot found, in part:

As explained in the reasons for judgment, I am satisfied that:
S&P's rating of AAA of the Rembrandt 2006-2 and 2006-3 CPDO notes was misleading and deceptive and involved the publication of information or statements false in material particulars and otherwise involved negligent misrepresentations to the class of potential investors in Australia, which included LGFS and the councils, because by the AAA rating there was conveyed a representation that in S&P's opinion the capacity of the notes to meet all financial obligations was "extremely strong" and a representation that S&P had reached this opinion based on reasonable grounds and as the result of an exercise of reasonable care when neither was true and S&P also knew not to be true at the time made.

In the US, litigation finance has recently come under attack by the US Chamber of Commerce, the largest lobbying group in America.  The majority of the US Chamber's funding is reported to come from just 16 large US companies.  The Chamber last week proposed regulating the litigation finance industry, but would prefer to eliminate it entirely. 

Litigation finance, however, is a critical mechanism to enable cases to be brought and litigated against large corporations, banks and other powerful institutions, often by small and mid-sized companies and entities. 

The  Australian Federal Court's finding yesterday -- in favor of local municipalities --  that S&P's AAA ratings were "misleading and deceptive" could never have been achieved without litigation funding support from IMF (Australia), Bentham's parent.

Further information:

Ralph Sutton

Chief Investment Officer, Bentham Capital LLC

Ph: 212 488 5331

Cell: 646 644 8366

Email: rsutton@benthamcapital.com

John Walker

Executive Director, IMF (Australia)

Ph: +61 2 8223 3567

Cell: +61 414 589 531

Email: jwalker@imf.com.au

SOURCE Bentham Capital LLC

About PR Newswire
Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Cloud Developer Stories
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing H...
StackIQ offers a comprehensive software suite that automates the deployment, provisioning, and management of Big Infrastructure. With StackIQ’s software, you can spin up fully configured big data clusters, quickly and consistently — from bare-metal up to the applications layer — ...
SimpleECM is the only platform to offer a powerful combination of enterprise content management (ECM) services, capture solutions, and third-party business services providing simplified integrations and workflow development for solution providers. SimpleECM is opening the market ...
Software AG helps organizations transform into Digital Enterprises, so they can differentiate from competitors and better engage customers, partners and employees. Using the Software AG Suite, companies can close the gap between business and IT to create digital systems of differ...
Cloudwick, the leading big data DevOps service and solution provider to the Fortune 1000, announced Big Loop, its multi-vendor operations platform. Cloudwick Big Loop creates greater collaboration between Fortune 1000 IT staff, developers and their database management systems as ...
Subscribe to the World's Most Powerful Newsletters
Subscribe to Our Rss Feeds & Get Your SYS-CON News Live!
Click to Add our RSS Feeds to the Service of Your Choice:
Google Reader or Homepage Add to My Yahoo! Subscribe with Bloglines Subscribe in NewsGator Online
myFeedster Add to My AOL Subscribe in Rojo Add 'Hugg' to Newsburst from CNET News.com Kinja Digest View Additional SYS-CON Feeds
Publish Your Article! Please send it to editorial(at)sys-con.com!

Advertise on this site! Contact advertising(at)sys-con.com! 201 802-3021



SYS-CON Featured Whitepapers
ADS BY GOOGLE