Morgan Stanley has been sued of defrauding investors

Discussion in 'Wall St. News' started by traderum, Jan 1, 2010.

  1. "Morgan Stanley has been sued by a Virgin Islands pension fund of defrauding investors by marketing risky mortgage-related investments that it expected to fail. The suit focuses on Morgan Stanley’s sale of collateralized debt obligations, or CDOs. According to the lawsuit, “Morgan Stanley was betting the entire investment it was promoting would fail.” Last week, the New York Times reported investigators in Congress, at the Securities and Exchange Commission and at the Financial Industry Regulatory Authority have launched probes into Morgan Stanley, Goldman Sachs and other Wall Street firms for deliberately selling these risky structured securities to clients and then betting on the securities failing."