The Research On The Civil Liability Of Credit Rating Institutions

After the US subprime mortgage Crisis, the Credit Rating Agencies lost itselfwarning role and undertook the blame from all aspects. The paper Based on creditrating agencies civil liability as the study subject, and the reference to the successfulexperience of other countries and the integrating the domestic development presentsituation, to construct a legal system of civil liability for credit rating agencies inChina.which the article will be divided into six parts:The first part, our credit rating agencies bear civil liability problems. Simple civillegislation, blank judicial practice and the weak theoretical study are the reasons forthe difficulty of investigated for civil liability of credit rating agencies.The second part, historical Survey of the U.S. credit rating agencies to civilliability. The legislative and judicial before “Enron case”， the legislative and judicialafter “Enron case”, The legislative and judicial developments in the sub primemortgage crisis reflects the history of the U.S. credit rating agencies the civil liabilityof responsibility from the waiver of liability.The third part, the legal basis of the credit rating agencies bear civil liability. Thecredit rating agencies need to bear civil liability because the ability to independentlybear civil liability. Credit rating agencies have different specific identity with the newsmedia. Credit rating agencies from rating behavior the enormous interests as well asthe reputation mechanism is unfair.The fourth part, the constituent elements of the civil liability of credit ratingagencies. Civil liability of credit rating agencies in two ways: First, liability for breachof contract, In orange county v standard&poor’s credit rating agency’s liability forbreach of contract as the breakthrough point analysis.The second is the tort liability, nJefferson county school district v. active rating analysis as the breakthrough point, thecredit rating agency moody’s case damage to be rating agency tort liability; In orangecounty v standard&poor’s credit rating agency’s liability for breach of contract as the breakthrough point analysisThe fifth part, the scope of civil liability by the credit rating agencies. Creditrating agency’s civil liability covers the credit rating agency, civil liability’s subject;Civil liability for damages subject credit rating institutions and credit rating agency,scope of compensation for civil liability issues.The sixth part, improve the relevant recommendations of the civil liability ofcredit rating agencies. We should establish the civil liability of credit rating agenciesinsurance system, strengthen “Burden of Proof” of the credit rating agencies, andimprove the class action system. Appropriate restrictions on credit rating agenciesimprove the civil liability of several aspects.