The SEC is still seeking fraud charges against credit agencies on ratings for collateralized debt obligations or CDOs that turned bad.
Moody’s, Standard & Poor’s and several rating agencies already have had a court ruling in their favor. The court has ruled that the agencies, as analysts, cannot be generally held liable for errors in judgment when making honest investment opinions.
The Securities and Exchange Commission’s ongoing recrimination mission is on a slippery slope. The SEC purpose will help plaintiff lawyers and others to whom the Obama administration leans politically.
But the effect on the economy because of the poor business psychology it induces, will be extremely harmful.
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