Credit Rating Agencies and the first Amendment
Part of the reason that we are in the economic mess that we are in is because credit ratings agencies gave wildly overly optimistic assessments of the soundness of corporations and their bonds, and investors relied on those ratings when they made their investment decisions. Enron was given high ratings just 4 days before they went bankrupt. The SEC and Congress want to regulate the Credit ratings agencies and investors are suing them for their incompetence. But the agencies have been able to stay out of hot water because their lawyers have made slick use of the First Amendment. Before watching this video, read this article from the Huffington Post. www.huffingtonpost.com Then watch this video where Floyd Abrahms uses the First Amendment to defend the credit ratings agencies. www.youtube.com
Gladys
Bill
A better example would be the final solution that anal hitler saying the final solution was just an opinion blah blah blah
James
*copy and paste*
When such a huge amount of money is riding on ‘an opinion’, and people lose everything based on such ‘opinions’, isn’t that grounds for criminal negligence?
You may as well let con artists off when they rob people of all their money. “It was just my opinion that the Fly By Night Insurance Co. existed, and that I was working for it! It’s not my fault that this poor sucker accepted my opinion and gave me money! First Amendment protection ON!”
Lisa
Look up the Nike v. Kasky case before the Supreme Court – Nike was suing for the right to lie under the 1st Amendment. @.x;
Gloria
Expert opinion sold to general public as a commerical product is not “free speech” is is commerical speech, a commercial product. Companies aren’t people anyway and shouldn’t be protected as such.
Esther
five twinkly stars. they twinkle in my opinion
and your videos remind me of live! tv, with their chello news and bouncy weather ;p
Sandra
The problem is they usually are not cooking the books. Enron was a special case but most places are not that good at it if they do it at all.
Emma
How are the Credit Rating agencies going to do their job, when the corporations in question are ‘cooking the books’.
Sylvia
YAY HE GOT HIS HEADSET BACK!!@!@#@!
Nicholas
OK… so I read it.
Its still entertaining.
Bill
Those who read the Dallas Morning News didn’t find it entertaining when implied that the guy who tried to bomb Fountain Place (Wells Fargo’s sky scraper) a couple of weeks ago might had seen Fight Club.
Rita
Dude… rules 1 and 2. Ring a bell?
Lance
Or pretty much anyone that is considered an expert in something: It is my opinion that the DNA matches that of the killer… it is my opinion that these coordinates on the rocket will get it to the moon, it is my opinion that WMDs are stored in that bunker…. hmmmmm
Bernard
By the way, it is nice to see you. I didn’t mention that in my first message here, but I thought it.
Marion
Well, consumers are more than able to sponsor better rating systems. The free market is a powerful thing.
Ben
Same thing with a home inspector who looks at your home to determine its soundness before you purchase.
Lester
i love the logic
Karen
These “opinions” are widely known in the business to cause decisions to be made in one way or the other because of these ratings… This lawyer won’t get through with that… But then again, we’re talking about american jurisdiction…
Evelyn
Project Mayhem doesn’t sound like such a bad idea now does it?
Elizabeth
If they didn’t make it clear that their recommendations were opinions (a.k.a. bullshit) then falling back on that when they’re screwing people over left and right is both morally repugnant and borders on fraud. Not all speech is worthy of protection under the first amendment.
Bradley
Thanks for another great youtube video.
Viola
Influence without accountability is the root of corruption.
Hazel
It’s too bad we screwed so many countries on the bogus AAA’s. The dollar is going to shit. But the unregulated market is more at fault I would say, I don’t know, I’m no genius at it and realize there are many factors but we are still in this shit and I just don’t know if we’re going to get out of it without more pain to come.
Alex
STOP believe in byrocracy! Just ignore them or at least try to.