Professor Hillman Comments on S&P Disclosure for Bloomberg.com
Professor Robert Hillman commented for Bloomberg.com on reports that Standard & Poor's met with some large bond investors and disclosed to them that the rating company was likely to downgrade the United States' credit rating prior to the public announcement of the downgrading. The article notes that S&P, one of the largest of 10 firms approved by the U.S. Securities and Exchange Commission as Nationally Recognized Statistical Rating Organizations, did not violate any laws in making such a disclosure, but Professor Hillman commented that the company may not have lived up to ethical standards expected by the public.
"This isn't an ordinary commercial enterprise we're talking about," said Hillman. "We want to expect more of a company like S&P."
Robert Hillman is a Professor of Law and holds the Fair Business Practices and Investor Advocacy Chair at UC Davis School of Law. He is a scholar in the fields of international transactions, securities regulation, and corporate and partnership law.