Morgan Stanley Strikes Back At CDO Fraud Claims

Law360, New York (December 6, 2011, 8:38 PM EST) -- Morgan Stanley & Co. Inc. on Monday denied fraud allegations lodged by 18 Singaporean investors who accused the financial services giant of taking unfair bets against mortgage-backed security investments, purportedly resulting in a $154.7 million loss.

The financial firm filed an answer in New York federal court contesting all claims brought in the suit, which alleges that the company took a short position against a synthetic collateralized debt obligation it packaged and marketed so it would see profits when investors lost out. The company further demanded...
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