-purification.In considering tort liability of CRAs, First Amendment protection should not be allowed to CRAs, when they were hired to participate … in structuring CDOs, which substantially impaired the objectivity of their rating business. Contractual liability should …

This paper argues that a mitigated strict liability regime can incentivize Credit Rating Agencies (CRAs) to produce … order to avoid crushing liability. Moreover, CRAs are allowed to choose how much to commit to their predictions. CRAs may … opt out of liability even entirely, unless their ratings are relevant for regulation. Finally, corrections in the relevant …

This study uses passage of the Dodd-Frank Act as a setting to examine whether changes in legal liability exposure faced …