# Unintended consequences - Obama finance reform edition
Oops.
Ford Motor's financing division has withdrawn plans for a new debt sale, in what marks the first shiver in the bond market from the sweeping financial legislation signed by President Obama Wednesday, The Wall Street Journal reported.
The Journal, citing market participants, said Ford yanked the deal, backed by packages of auto loans, because it couldn't use credit ratings in its offering documents, which is a legal requirement for such sales.
The new financial regulation makes it easier for investors to successfully sue credit rating agencies for assigning unrealistically high ratings. As a result, the three major agencies ... have said they'll no longer let bond issuers list their ratings in public sale documents.
File under: world : {2010.07.23 - 17:01}
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