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...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.