Kroll Bond Rating Agency Releases Comment “Dodd-Frank and the AIG Litigation: Implications for Investors”

NEW YORK--()--Kroll Bond Rating Agency (KBRA) releases research report entitled “Dodd-Frank and the AIG Litigation: Implications for Investors”. The report makes the following points:

  • KBRA believes that the recent court decisions regarding the bailout of American International Group (NYSE:AIG) hold significant implications for investors. Read together with the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act, the Court’s decision greatly narrows the discretion of the Fed in making emergency loans to troubled financial institutions.
  • More, the AIG decision illustrates how excessive debt and related financial crises serve to erode the rights of investors by undermining prudential limits and the rule of law.
  • The refusal of regulators to address the risky behavior that led to the AIG failure and the subsequent ad hoc rescue should not serve as a source of comfort to investors. Quite the contrary, KBRA believes that the illegal rescue of AIG and other institutions illustrate the need to call for greater focus on how investors are treated in insolvency situations.

To view the full report, please use the following link: www.krollbondratings.com/show_report/2523

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About Kroll Bond Rating Agency

KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).

Contacts

Analytical Contacts:
Kroll Bond Rating Agency
Christopher Whalen, 646-731-2366
Senior Managing Director
cwhalen@kbra.com

Contacts

Analytical Contacts:
Kroll Bond Rating Agency
Christopher Whalen, 646-731-2366
Senior Managing Director
cwhalen@kbra.com