Credit ratings agencies (finally) facing the music?

Adele Ferguson in the Australian highlights some of the upcoming legal proceedings involving the credit ratings agencies, particularly with respect to the 'sub-prime' mortgage backed securities. Not too soon, either.

Here's the start:

THE spotlight is about to return to the culpability of credit ratings agencies in the global financial crisis following a decision by the biggest pension fund in the US to sue over "wildly inaccurate" ratings on the $US600 billion ($750bn) of synthetic derivatives sold to investors.

This, coupled with a court case to be heard in NSW Federal Court this week, could open the floodgates for third-party litigation against the credit rating agencies. It should also corral the regulators into finally doing something about the so-called independence and enormous power of agencies such as Moody's Investors Service and Standard & Poor's.

From the comments below - a link to a guest lecture by Brad Walters, General Manager, Financial Analytics, Corporate Scorecard held at the Australian School of Business, UNSW: