Wednesday, 1 April 2015
Last updated 4 hours ago
May 10 2011 | 1:31pm ET
Morgan Stanley is suffering from a couple of new hedge fund legal headaches, the firm said yesterday.
In a regulatory filing trumpeting its settlement of a U.S. Bank lawsuit over a collateralized debt obligation for "substantially less" than the $274 million it feared, the investment bank disclosed a raft of other legal issues, including two stemming from the world of hedge funds.
Morgan Stanley said it has been sued—again—by Cambridge Place Investment Management, which accuses the firm of misleading it about mortgage-backed securities. The complaint, filed in February, alleges that Morgan Stanley and others "made untrue statements and material omissions" when Cambridge Place bought some $102 million in "certain mortgage pass-through certificates backed by securitization trusts containing residential mortgage loans" issued, underwritten or sold by Morgan Stanley.
The lawsuit comes almost a year after Cambridge Place sued Morgan Stanley and dozens of other banks and brokerage, accusing them of misleading the hedge fund about subprime mortgage-linked securities. That litigation is separate from the lawsuit filed in February, Morgan Stanley said.
Concord, Mass.-based Cambridge Place is liquidating three hedge fund that invested in subprime mortgages.
Morgan Stanley also said that it faced another lawsuit, this one stemming from its purchase, with others of $983 million in securities issued by Cheyne Finance, a structured investment vehicle created by hedge fund Cheyne Capital. Cheyne Finance defaulted in September 2007.
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…