Morgan Stanley to face fraud claims over $500m CDO

Morgan Stanley is to face fraud claims brought by a Cayman Islands vehicle that bought $17m in high-risk notes tied to residential mortgage-backed securities in a $500m collateralised debt obligation that was wiped out. A New York appeals court upheld a trial judge's refusal to dismiss the claims.

By Pete Brush (January 4, 2016, 3:33 PM EST) -- A New York state appeals court has upheld a trial judge's refusal to dismiss fraud claims against Morgan Stanley brought by a Cayman Islands vehicle that bought $17 million in high-risk notes tied to residential mortgage-backed securities in a $500 million collateralized debt obligation that were wiped out....

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