Morgan Stanley, Others Face FINRA Probe Over CDOs

Law360, New York (July 23, 2010, 7:12 PM EDT) -- The Financial Industry Regulatory Authority reportedly is taking a closer look into how institutional investors were sold collateralized debt obligations by Morgan Stanley, Barclays PLC and Credit Suisse Group AG.

As several federal regulators investigate the impact of CDOs on the financial meltdown, FINRA is reviewing whether the three Wall Street giants engaged in improper sales practices when they offered the securities as an option to institutional investors, a source familiar with the matter told Reuters on Friday.

The independent regulator for the securities industry in...
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