RobertB
February 6th, 2008, 04:51 PM
Merrill Hit With Fraud Charges
Liz Moyer, 02.01.08, 3:40 PM ET
Wall Street is starting to face recriminations for its role in the credit crunch.
Massachusetts securities regulators filed fraud charges against Merrill Lynch (nyse: MER - news - people ) Friday, accusing the bank of selling "unsuitable" and now practically worthless collateralized debt obligations (CDO) to the city of Springfield, Mass.
The charges come a day after Merrill agreed to buy back the CDOs, paying Springfield the $13.9 million it had invested last spring. Merrill acknowledged Thursday that the city had not expressly approved the purchase. The investment bank said Friday the problem was not widespread, but rather a sales practice issue, and unique to the Springfield situation.
http://www.forbes.com/home/wallstreet/2008/02/01/merrill-subprime-fraud-biz-cx_lm_0201merrill.html
Liz Moyer, 02.01.08, 3:40 PM ET
Wall Street is starting to face recriminations for its role in the credit crunch.
Massachusetts securities regulators filed fraud charges against Merrill Lynch (nyse: MER - news - people ) Friday, accusing the bank of selling "unsuitable" and now practically worthless collateralized debt obligations (CDO) to the city of Springfield, Mass.
The charges come a day after Merrill agreed to buy back the CDOs, paying Springfield the $13.9 million it had invested last spring. Merrill acknowledged Thursday that the city had not expressly approved the purchase. The investment bank said Friday the problem was not widespread, but rather a sales practice issue, and unique to the Springfield situation.
http://www.forbes.com/home/wallstreet/2008/02/01/merrill-subprime-fraud-biz-cx_lm_0201merrill.html