The Financial Industry Regulatory Authority has fined Morgan Stanley $90,000 fine in settlement of charges that it traded municipal bonds at unfair rates. This sum is in addition to the $41,000 the firm will pay to investors in restitution.The unfair rates include markups and markdowns ranging from 5.25% to 24.3%. These unfair rates, which were detrimental to investors, were made on 11 corporate bond trades and three municipal securities trades.As is typical in settlement agreements, Morgan Stanley neither confirmed nor denied the allegations.
Posts Tagged ‘Municipal Bonds’
Aravali Fund Losses
July 21st, 2009 
Before You Invest The Aravali Fund was recommended by Deutsche Bank and other brokerage firms to income oriented investors who also sought to preserve their capital. Deutsche Bank told it’s clients that the Aravali Fund was a safe investment that bought investment grade or highly rated municipal bonds and acted as a municipal bond replacement fund.
Posted in Finance Fraud 
Tags: Arbitrage, Brokerage Firms, Deutsche Bank, Deutsche Bank Alex Brown, Deutsche Bank Securities, Deutsche Bank Securities Inc, Fiduciary Relationship, Financial Counselor, Interest Rate Swaps, Investment Adviser, Investment Grade, Investment Recommendations, Kreidel, Misrepresentations, Municipal Bond, Municipal Bonds, Russell Smith, Short Position, Suicide Letter, Treasury Bonds 
No Comments »FINRA Investigates Municipal Bond Failures
July 2nd, 2009 Before You Invest The Financial Industry Regulatory Authority announced Tuesday that it was “conducting sweeps” of firms involved in several recent municipal bond collapses with an eye toward future investigations and possible disciplinary actions. The regulator, known as Finra, an industry-funded group that polices Wall Street, is seeking information from financial firms involved in several recent market problems — firms that underwrote securities tied to derivatives that were sold to municipalities and those that sold so-called municipal gas bonds that were guaranteed by the defunct Lehman Brothers and are now distressed securities.
Posted in Finance Fraud Tags: Bond Investment, Concerted Action, Consumer Complaints, Derivatives, Disciplinary Actions, Distressed Securities, Financial Industry Regulatory Authority, Finra, Jefferson County, Ketchum, Lehman Brothers, Marketing Pricing, Muni Bond, Municipal Bond Market, Municipal Bonds, Municipalities, Polices, Retail Investors, Sales Marketing, Variable Rate No Comments »Oppenheimer Champion Income Fund — Wrong-Way Bets
January 28th, 2009 Before You Invest Oppenheimer’s Champion Income Fund sank 78.5 percent last year from incorrect-way bets tied to commercial mortgages, making it the worst performing taxable high-yield bond fund. Angelo Manioudakis, a portfolio manager who oversaw $16 billion in fixed-income assets, resigned on Dec. 12. Two investors filed complaints yesterday with the Financial Industry Regulatory Authority claiming the company misrepresented the fund’s risk.
Posted in Finance Fraud Tags: Airline Company, Annapolis Maryland, Commercial Mortgages, Employee Compensation, Financial Industry Regulatory Authority, Fixed Income, Fund Group, High Yield Bond, High Yield Bond Fund, Money Management Firm, Municipal Bond Fund, Municipal Bonds, Oppenheimer Fund, Oppenheimerfunds, Portfolio Manager, S College, Terror Attacks, Tobacco Companies, Wagers, Wrong Way No Comments »
