Ratings Agencies Will Be Held Accountable?

(Via the WSJ and CJR)

Surely that's a misprint.

Standard & Poor's, Moody's Investors Service and Fitch Ratings are all refusing to allow their ratings to be used in documentation for new bond sales, each said in statements in recent days. Each says it fears being exposed to new legal liability created by the landmark Dodd-Frank financial reform law.

The new law will make ratings firms liable for the quality of their ratings decisions, effective immediately. The companies say that, until they get a better understanding of their legal exposure, they are refusing to let bond issuers use their ratings.

Or, more likely - that's something that will be swiftly reversed in some non-accountable way.

Still, fun to watch them squirm.

And Chittum's right - nice to know this little element got pretty much zero press up until now. Why do we have a media again? Yeesh.