Latest Breaking News

think

(11,641 posts) Fri Apr 1, 2016, 06:21 PM Apr 2016

The state of California is suing Morgan Stanley over crisis-era investments

Source: Business Insider

The state of California is suing investment bank Morgan Stanley over losses during the financial crisis.

California alleges that the firm misrepresented complex investments such as mortgage-backed securities to California pension funds CalPERSand CalSTRS, according to a filing made in state superior court.

"Attorney General Kamala D. Harris today filed a lawsuit against investment bank Morgan Stanley for misrepresentations about complex investments such as residential mortgage-backed securities, in which large pools of home loans were packaged together and sold to investors," said a release from Harris' office.

"These misrepresentations contributed to the global financial crisis and to major losses by investors including California's public pension funds, which are responsible for the retirement security of California peace officers, firefighters, teachers, and other public employees."

Read more: http://www.businessinsider.com/california-is-suing-morgan-stanley-2016-4?utm_source=feedly&utm_medium=webfeeds

16 replies

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Highlight:

The state of California is suing Morgan Stanley over crisis-era investments (Original Post) think Apr 2016 OP

The Obama administration should have gone after these miscreants... Human101948 Apr 2016 #1

Good! JustAnotherGen Apr 2016 #2

I am surprised it took this long for Calpers. dixiegrrrrl Apr 2016 #14

Something seems off GummyBearz Apr 2016 #3

CALPERS has often pressured those they invest in to be more socially responsible. DisgustipatedinCA Apr 2016 #8

How does she expect to get around the statute of limitations The Second Stone Apr 2016 #4

Perhaps there is no statute of limitations. sofa king Apr 2016 #11

Kampala has a good future in politics greiner3 Apr 2016 #5

Implications for the Democratic primary in that state? Babel_17 Apr 2016 #6

Wonderful! Next up: S&P, Moodys, & Fitch Ruby the Liberal Apr 2016 #7

didn't moodys, s and p etc. Mosby Apr 2016 #13

Yes - and paid for by the originators Ruby the Liberal Apr 2016 #16

Whoohoo California! lark Apr 2016 #9

Interesting that police are called "peace officers" JudyM Apr 2016 #10

also from LA Times alp227 Apr 2016 #12

Then they ought to investigate ENRON libodem Apr 2016 #15

Human101948

(3,457 posts)

1. The Obama administration should have gone after these miscreants...

Reply to think (Original post)

Fri Apr 1, 2016, 06:26 PM

Apr 2016

alas, we know what actually happened--gigantic bonuses for everyone at the firm!

JustAnotherGen

(31,937 posts)

2. Good!

Reply to think (Original post)

Fri Apr 1, 2016, 06:26 PM

Apr 2016

The CDO management 'firms' laundered all that risk for the likes of Met, Morgan Stanley etc etc.

But ultimately Morgan knew those triple rated pieces of shit were just that: shit.

dixiegrrrrl

(60,010 posts)

14. I am surprised it took this long for Calpers.

Reply to JustAnotherGen (Reply #2)

Sat Apr 2, 2016, 02:25 PM

Apr 2016

The mortgage bond fraud has been known for several years now, and there have been a lot of lawsuits by funds which bought them.

GummyBearz

(2,931 posts)

3. Something seems off

Reply to think (Original post)

Fri Apr 1, 2016, 07:48 PM

Apr 2016

Pension funds are magical things that just shit out gold coins after you retire. Why would they need to sue anyone over investments???

DisgustipatedinCA

(12,530 posts)

8. CALPERS has often pressured those they invest in to be more socially responsible.

Reply to GummyBearz (Reply #3)

Sat Apr 2, 2016, 03:04 AM

Apr 2016

Morgan Stanley lied about their financial vehicles to the state of California, which caused harm to pensioners. So they're suing.

The Second Stone

(2,900 posts)

4. How does she expect to get around the statute of limitations

Reply to think (Original post)

Fri Apr 1, 2016, 07:56 PM

Apr 2016

I wonder.

sofa king

(10,857 posts)

11. Perhaps there is no statute of limitations.

Reply to The Second Stone (Reply #4)

Sat Apr 2, 2016, 12:17 PM

Apr 2016

Or it's a very long statute of limitations. An 8-year statute of limitations on pension mismanagement would hardly be fair for those bilked out of a pension plan designed to mature over decades.

That, uh, doesn't mean it works that way. All my pension plans were stolen before I had a chance to even look at 'em.

greiner3

(5,214 posts)

5. Kampala has a good future in politics

Reply to think (Original post)

Fri Apr 1, 2016, 08:45 PM

Apr 2016

VP pick in 2024?

Babel_17

(5,400 posts)

6. Implications for the Democratic primary in that state?

Reply to think (Original post)

Fri Apr 1, 2016, 08:59 PM

Apr 2016

Lots of registered voters among the affected people.

Ruby the Liberal

(26,219 posts)

7. Wonderful! Next up: S&P, Moodys, & Fitch

Reply to think (Original post)

Fri Apr 1, 2016, 10:10 PM

Apr 2016

Mosby

(16,385 posts)

13. didn't moodys, s and p etc.

Reply to Ruby the Liberal (Reply #7)

Sat Apr 2, 2016, 01:19 PM

Apr 2016

Use "monolines" to underwrite and rate CDOs and CDSs?

Regardless who did it though the rating these bundles of derivatives were receiving was complete bullshit, how do you underwrite and rate something when you don't even know what the underlying securities are?