The Dirt Lawyer's Blog Archive

That's what this GlobeSt.com report states : The are widespread fears that if rating agencies develop a separate category for structured securities it will further erode investor confidence in CMBS and RMBS and delay these markets’ return. Apparently the SEC wants to bring some transparency to the market, which I think is a good thing. And if that means it takes a while for the conduit market to come back, then so be it. I was personally having little faith in some of the rating agencies' work on deals, especially when things were hot and heavy. That being said, however, this could bode poorly (and improperly so, perhaps) for structured finance vis-a-vis other rated securities: Separate ratings [according to Jan Sternin, and SVP at the MBA] would lead to the perception in the marketplace that corporates and munis have an even higher level of insulation against loss -- and that structured finance may be even more prone to loss. "It would render all AAAs not created e...

Moody's Investors Service, one of the major rating agencies, says it is being passed over on 75% of CMBS rating assignments because of tighter credit standards than its competitors. This is just like me choosing a lender. One lender makes me do a, b, c, d, e, f, g, h and i and its competition only makes me do a, b and c. All else being equal, who do you think I choose? You shop agencies just like you do lenders. Of course, the people who might get hurt are those expecting to clip the coupons. For a great analysis of the situation, check out Mike Shedlock's thoughts on the situation . Here's a stellar sample of his thoughts: "So this talk of a "tough stance" by Moody's is a total crock. OK so maybe Moody's is losing out on a few ratings because of shopping around. So what? Not playing the ratings game scam is easy to do now with all of these blowups we are seeing. It's much tougher to do what needs to really be done, and that is to downgrade much m...

Larry Bodine's blog reports that Avvo.com, the new website purporting to rate attorneys on a 1-10 scale is refusing to delete profiles of attorneys who do not want to be listed on the site. This is wrong, wrong, wrong. If Avvo wants to gain any respect from the legal community, then it must allow us to opt out of the system should we choose. While I remain somewhat ambivalent about Avvo for now, others aren't. Lawsuits are on the way . Susan Cartier Liebel (wow, two mentions in a week!) probably has the best anti-Avvo post I've read, and Kevin O'Keefe also has a terrific post about the service, including summaries of the positions of the lawyer preparing a class-action case and that of Avvo's CEO (who also apparently spoke to Kevin recently). As for me, I still say I am more than a number or letters. I get what Avvo is trying to do, though I'm not sure it will be successful and I have concerns the system can be worked to get a high rating. (Chuck Newton...

Here's more from Larry Bodine on Avvo and some problems and weird ratings. Apparently, Abraham Lincoln and Clarence Darrow are listed. (Why? A plausible explanation: the Illinois ARDC lists all deceased lawyers in the register, too.) The Solicitor General has the same rating that I do. (No argument from me.) And disbarred lawyers and felons have higher ratings than me. (Argument from me there.) Presumably the bugs will work themselves out, but here's another reason the number system just troubles me, at least for now.

When I was a young lawyer, we didn't have easy web access to computerized directories of lawyers. If we wanted to find a lawyer in another city, we consulted a huge, multi-volume tome called Martindale-Hubbell. (They are also on the web now at www.martindale.com .) Martindale always tried to distinguish itself from other legal directories by purporting to rate lawyers by ability (A for very high to preeminent, B for high to very high, and C for good to high) and general ethical standards (V - you either are very high or nothing). Supposedly, if you were an "AV" rated lawyer then you were part of the creme de la creme. (Disclosure note: my firm is AV rated, although I certainly don't tout that credential to my clients or to prospects.) Now there is a new, much-ballyhooed site opening on the web: Avvo.com . Avvo will purport to rate attorneys on a 1 to 10 scale based on credentials, experience, disciplinary history, and client recommendations. Larry Bodine has a g...