World Business News

A round up of the latest news for those doing business internationally

S&P and ABN Amro suffer Australian legal defeat

Zone(s): Australia ¦ Sector(s): Finance, Law
[6 June 2014, BBC News] Two financial institutions have lost an Australian court appeal against a decision that they “deceived” investors prior to the 2008 financial crisis. Credit ratings agency Standard & Poor’s and Dutch bank ABN Amro are being sued over financial products that lost most of their value in the downturn.The case was brought by 12 Australian local authorities. S&P and ABN Amro should be liable for 100% of the losses suffered, the court said on Friday.

ABN Amro’s investment division was owned by RBS at the time the derivatives were sold – RBS declined to comment on Friday. S&P is facing legal action in other parts of the world over its ratings prior to the financial crisis. In the US, sixteen states may pursue claims alleging that S&P issued misleading credit ratings.

Read more:
www.bbc.co.uk/news/business-27732742