A recent arbitration panel has awarded three holding companies over $1 million for losses sustained by investments in various Morgan Keegan & Co. bond funds. The funds in question were heavily backed by mortgage-related securities, experiencing a near total loss in the subprime mortgage crisis of two years past.
This is the second time in a week that an arbitration panel has ruled in favor of investors against Morgan Keegan & Co.’s bond funds. Earlier this week an investor was awarded $2.5 million for losses experienced due to investment in such funds. Over 400 cases are pending against Morgan Keegan & Co. relating to their bond funds. Investors affected by these bond funds state that such funds were promoted as conservative investments with low risks, when in reality they involved a high degree of risk and volatility.
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