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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. |
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