SEC Says Ex-Morgan Keegan Directors Shirked MBS Valuations

Law360, New York (December 10, 2012, 1:55 PM EST) -- The U.S. Securities and Exchange Commission on Monday accused eight former Morgan Keegan & Co. Inc. directors of failing to properly oversee five mutual funds that overvalued toxic mortgage-backed securities during the 2007 housing market crisis.

The defendants, who sat on the boards of directors for five Morgan Keegan mutual funds between January 2007 and August 2007, delegated responsibility for valuing the securities to a “valuation committee” without offering guidance on what methods should be used, according to an SEC administrative proceeding. In addition, the defendants...
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