U.S. investigates Morgan Stanley

[marmar]

May 12, 2010, 12:33 a.m. EDT
U.S. investigates Morgan Stanley: WSJ


TOKYO (MarketWatch) -- U.S. Federal prosecutors are looking into whether Morgan Stanley misled investors about mortgage-derivatives deals it helped design and sometimes bet against, The Wall Street Journal reported Wednesday, citing people familiar with the matter. The brokerage arranged and marketed pools of bond-related investments referred to as "collateralized debt obligations," or CDOs -- and traders said Morgan Stanley's trading desk sometimes placed bets that their value would fall, the report said. Investigators are examining whether Morgan Stanley made proper representations about its roles.


http://www.marketwatch.com/story/us-investigates-morgan-stanley-wsj-2010-05-12