Civil Liability of Rating Agencies - Regulatory All-or-Nothing Approaches between Immunity and Over-Deterrence
20 Pages Posted: 6 Jan 2013
Date Written: January 2, 2013
Civil liability of rating agencies has to strike a balance between over-deterrence and overly lax behavior control. The resulting problems of a capital market freeze and difficulties of proof, as they become apparent in most legal systems and the European Commission’s Draft Proposal to amend the EU-Rating Regulation, could possibly be eliminated by procedural presumptions or liability caps.
Keywords: rating agencies, liability, European Commission’s Draft Proposal to amend the EU-Rating Regulation, CRA3, Dodd Frank Act
JEL Classification: F02, F36, G18, G28, G38, K12, K13, K22, K23, K33, K42, L51
Suggested Citation: Suggested Citation