Italian prosecutors seek trial for S&P, FitchNovember 12, 2012 - 21:15 AMT PanARMENIAN.Net - Italian prosecutors are seeking trial for seven current and former employees at rating agencies Standard & Poor’s and Fitch over their downgrades of Italy, paving the way for the first European court case over sovereign rating cuts, according to the Globe and Mail. Prosecutors in the southern town of Trani, launching a case which bigger Italian courts have refused to back, probed five analysts from S&P and two from Fitch for alleged market manipulation and abuse of privileged information. S&P on Monday, Nov 12, rejected all the claims made by the prosecutors and an Italian judge will have the ultimate say on whether the trial should go ahead. The magistrates dropped allegations against peer agency Moody’s, saying there was no evidence of “intention to manipulate markets” during the raft of rating cuts that have hit Italy since 2011. If the Italian case goes to trial it may reshape the long-running debate over liability of rating agencies for their credit opinions at a time of great global economic uncertainty. Agencies have increasingly come under fire for not predicting the subprime mortgage debt crisis of 2008-2009. Last week an Australian court ruled that S&P misled investors by giving top notch ratings to risky derivatives in the run-up to the crisis. Prosecutors allege that the reports on debt-laden Italy and its banking system by S&P and Fitch were inaccurate and in at least one case leaked during market hours, provoking steep losses on Italy’s stock and bond markets. “These claims are entirely baseless and without any merit as our role is to publish independent opinions about creditworthiness according to our public and transparent methodologies, which we apply consistently around the world,” S&P said in an e-mailed statement on Monday. There was no immediate comment from Fitch. Governments across Europe have come under assault from markets for running up big debts which they had trouble servicing. In response, Italy and others have embarked on austerity programs which have proved deeply unpopular. However, European policy makers have complained the ratings agencies were too quick to downgrade EU states despite bailouts and the painful reforms. In the United States, authorities have criticized New York-based S&P for cutting the U.S. cherished triple-A rating last August. Italian prosecutors said on Monday U.S. authorities had formally asked them for information over the case. Top stories Authorities said a total of 192 Azerbaijani troops were killed and 511 were wounded during Azerbaijan’s offensive. In 2023, the Azerbaijani government will increase the country’s defense budget by more than 1.1 billion manats ($650 million). The bill, published on Monday, is designed to "eliminate the shortcomings of an unreasonably broad interpretation of the key concept of "compatriot". The earthquake caused a temporary blackout, damaged many buildings and closed a number of rural roads. Partner news | Scholz hopes Armenia-Azerbaijan peace treaty will be signed this year German Chancellor Olaf Scholz hopes that a peace treaty between Armenia and Azerbaijan will be signed this year. Ucom equips four bus stops in Ijevan with free Wi-Fi Ucom now provides free Wi-Fi coverage in smart bus stops in four communities of Ijevan. Armenia, Russia discuss life extension of Metsamor nuclear plant Issues regarding the extension of life of the 2nd power unit of the Armenian Nuclear Power Plant were discussed in Yerevan. Armenians stage more campaigns against territorial concessions to Azerbaijan Protesters blocked more roads across Armenia on Friday, April 26 in continuing attempts to scuttle territorial concessions to Azerbaijan. |