BU Now » collateralized debt obligations http://blogs.bu.edu/bunow News, information and research from Boston University Wed, 21 Sep 2011 18:14:24 +0000 en hourly 1 http://wordpress.org/?v=3.1.4 Morgan Stanley new Fed target http://blogs.bu.edu/bunow/2010/05/12/morgan-stanley-new-fed-target/ http://blogs.bu.edu/bunow/2010/05/12/morgan-stanley-new-fed-target/#comments Wed, 12 May 2010 21:16:18 +0000 Dick Taffe http://blogs.bu.edu/bunow/?p=5543 Morgan Stanley signWall Street investment bank Morgan Stanley reportedly is being investigated by federal authorities to see if it misled investors about mortage-derivatives deals it helped design and sometimes bet against.  This is on the heels of the Securities and Exchange Commission charging Goldman Sachs with securities fraud involving similar collateralized debt obligations or CDOs.  Law Professor Elizabeth Nowicki, a former SEC attorney and Wall Street lawyer, says this suggests Morgan Stanley might end up in the same position as Goldman is in.

“The federal government is now making clear that they will take the aggressive watchdog actions they have recently been chastised for not taking over the past two years.  The bigger question is what other banks can expect a phone call from the SEC or the DoJ.”

Contact Elizabeth Nowicki, 518-867-5355, enowicki@bu.edu

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