Secondary Market/Investors
Massachusetts Sues Merrill Lynch on CDO Sales
By
PAUL JACKSON
February 1, 2008 10:07 PM CST
Massachusetts’ top securities regulator said on Friday that the state had sued Merrill Lynch over CDOs sold to the city of Springfield, Mass.
In a complaint filed by Secretary William Gavin’s office, the state said it is seeking an order “to disgorge all profits attributable to the alleged wrongdoing,” as well as calling for an independent consultant to review “systemic supervisory breakdowns and incentives within Merrill that allowed the alleged wrongdoing to occur.”
HW had noted earlier that Merrill Lynch had agreed to settle with the city over what it said was an “unauthorized” purchase, reimbursing $13.9 million in investment funds after Springfield found itself facing mounting losses over mortgage-related CDOs it didn’t know it owned.
Click here for a copy of the complaint.
Print This Article
recent stories by department
Origination/Lending
Secondary Market/Investors
Get your HW Fix
Join nearly 10,000 bold subscribers who already get our daily email delivered to their inbox -- it's free, and a great way to ensure you don't miss something.
Events
2009 Dec 09 -- 2009 Dec 10
RMBS: Assessing Value and Risk
This two-day course in New York City will equip market participants with the knowledge and skills to evaluate prime, Alt-A and subprime RMBS portfolios in order to assess their value and understand inherent risks. For more information, visit www.fitchratings.com.
2010 Jan 13 -- 2010 Jan 14
2010 Collection Technology Summit
The Collection Technology Summit is the first industry event to focus solely on collections and its associated technologies and continues to draw top executives from the nation's most prominent institutions. The Collection Technology Summit, where innovation happens. For more information, visit www.collectiontechnology.net
