Uploaded October 2009 | Updated September 2026, 1 week ago
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.
huffingtonpost.com/2009/10/28/under-attack-credit-rater_n_337712.html
Then watch this video where Floyd Abrahms uses the First Amendment to defend the credit ratings agencies.
youtube.com/watch?v=njFqvTWhhX4
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.
huffingtonpost.com/2009/10/28/under-attack-credit-rater_n_337712.html
Then watch this video where Floyd Abrahms uses the First Amendment to defend the credit ratings agencies.
youtube.com/watch?v=njFqvTWhhX4
