Merrill Lynch and Morgan Stanley sued over auction rates
Published March 26th, 2008
Merrill Lynch & Co and Morgan Stanley were sued on Tuesday by clients accusing them of deceptively marketing auction rate securities.
The two separate lawsuits, filed in U.S. federal court in Manhattan, are seeking class action status.
Auction rate securities refers to a debt instrument (corporate or municipal bonds) with a long-term nominal maturity for which the interest rate is reset through a dutch auction.
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