Morgan Stanley Loses Bid For TBA Claims In Lehman Case

Law360, New York (December 9, 2011, 8:27 PM EST) -- A Morgan Stanley unit on Thursday lost its fight to submit customer claims in the liquidation of Lehman Brothers Inc. that were based on a kind of contract used to trade billions of dollars of mortgage-backed securities every day.

U.S. Bankruptcy Judge James M. Peck ruled that Morgan Stanley — along with bond managers Pacific Investment Management Co. LLC and Rogge Global Partners PLC — cannot make customer claims against the defunct brokerage because of so-called TBA, or to-be-announced, contracts. The companies could still claim damages...
To view the full article, register now.