Morgan Stanley Bribed Ratings Agencies, CDIB Alleges

Law360, New York (June 15, 2011, 4:45 PM EDT) -- China Development Industrial Bank told a New York appeals court Wednesday that Morgan Stanley essentially bribed ratings agencies for high ratings to induce investors to pour money into residential mortgage-backed securities it knew were junk.

Morgan Stanley wants the court to create a double standard by holding its investors to agreements that would leave them responsible for due diligence while at the same time paying rating agencies high fees to inflate their securities ratings, CDIB attorney Jason C. Davis of Robbins Geller Rudman & Dowd LLP...
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