Five separate class action lawsuits in the U.S. District Court for the Western District of Tennessee on behalf of all trusts and custodial accounts collectively known as "The Funds" during the period between Dec. 6, 2004 and Feb. 6, 2008.
Morgan Keegan is currently under fire because a number of funds managed by the company lost value once the market for collateral-backed debt obligations - underpinned by risky subprime mortgages - declined due to skyrocketing loan defaults and the U.S. housing market that tanked.
For example, its Select Intermediate Bond fell by more than 50 percent last year and the Select High Income fund fell 60 percent, according to documents published by Chicago-based Morningstar Inc.
Morgan Keegan and Co. is a subsidiary of Birmingham-based Regions Financial Corp. (NYSE:RF).
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