Morgan Stanley Said to Face C.D.O. Scrutiny |
| New York Times - May 12, 2010 |
The investigation into post crisis Wall Street has expanded as federal prosecutors have begun examining whether Morgan Stanley misled investors and bet against mortgage-derivative deals that it had helped create, The Wall Street Journal reported, citing people familiar with the matter.
Traders have said that Morgan Stanley was involved in the selecting and selling of collateralized debt obligations to investors, which the bank also bet would decline in value, The Journal said. The investigation will look into whether the firm was straightforward in its dealings.
Two of the deals coming under prosecutors’ scrutiny were dubbed the “Dead Presidents” deals by traders, because they were named after Presidents James Buchanan and Andrew Jackson, the newspaper reported. Morgan Stanley was involved in creating and subsequently betting against these deals, but did not market them to investors.
Read Full Article from New York Times
- Posted: 2010-05-12 09:58:51
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