Morgan Stanley Can't Escape CDIB Fraud Suit

Law360, New York (February 28, 2011, 8:17 PM EST) -- A New York state judge on Friday rejected Morgan Stanley & Co. Inc.'s bid to get several fraud charges against it thrown out in a lawsuit by China Development Industrial Bank Inc. over risks involved in a credit default swap.

Judge Melvin L. Schweitzer in the Supreme Court of the State of New York, New York County, denied a motion by Morgan Stanley to dismiss the complaint over mirror credit default swaps tied to its so-called Supersenior Swap, a hybrid collateralized debt obligation product tied to...
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