Die Haftung Von Ratingagenturen Gegenüber Dem Anlegerpublikum (Liability of Rating Agencies)

36 Pages Posted: 13 Sep 2012 Last revised: 27 Sep 2012

See all articles by Gerhard Wagner

Gerhard Wagner

Humboldt University School of Law; University of Chicago Law School

Date Written: September 12, 2012

Abstract

Credit rating agencies (CRAs) are not subject to broad, negligence-based liability vis-à-vis third parties such as investors. As a consequence, incentives to take an optimistic, rather than a pessimistic-conservative approach in rating firms or financial products are strong. The EU-Commission aims at changing this situation and has proposed a statutory liability rule that would subject CRAs to third party liability. The proposal is a step in the right direction but needs to be improved. At the level of liability, it seems misguided to limit the exposure of CRAs to cases of intentional wrongdoing and gross negligence, both difficult to plead and prove. On the other hand, given that liability has been established, quantum should not be unlimited but rather be capped at a certain amount. The cap could be formulated either as a function of the volume of the issued securities or as the product of the fee earned by the CRA and a particular multiplier that needed to be fixed by the European lawmakers.

Note: Downloadable document is in German.

Keywords: rating agencies, third-party liability, pure economic loss, cap

JEL Classification: K13, K22

Suggested Citation

Wagner, Gerhard, Die Haftung Von Ratingagenturen Gegenüber Dem Anlegerpublikum (Liability of Rating Agencies) (September 12, 2012). Available at SSRN: https://ssrn.com/abstract=2145269 or http://dx.doi.org/10.2139/ssrn.2145269

Gerhard Wagner (Contact Author)

Humboldt University School of Law ( email )

Unter den Linden 9
Berlin, 10099
Germany

University of Chicago Law School ( email )

1111 East 60th Street
Chicago, IL 60637
United States

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