SEC Slaps Morgan Keegan With ARS Suit

Law360, New York (July 21, 2009, 3:30 PM EDT) -- The U.S. Securities and Exchange Commission has sued broker-dealer Morgan Keegan & Co. Inc., alleging that the firm misled investors about the risks associated with auction rate securities.

In a complaint filed Tuesday in the U.S. District Court for the Northern District of Georgia, the agency claims that Tennessee-based Morgan Keegan, a wholly owned subsidiary of Regions Financial Corp., told customers that ARS were safe and highly liquid investments similar to money market funds, even while the firm was well aware that the ARS market was...
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