Wednesday, May 12, 2010
The Wall St. Journal reports today that the DOJ (out of its New York office) is investigating Morgan Stanley and mortgage-related deals that it designed and marketed (called "Dead President" deals after Presidents Buchanan and Jackson). Similar to the charges brought by the SEC against Goldman Sachs, the prosecutors are investigating whether there was adequate disclosure of Morgan Stanley's role and that it may have bet against these deals? The investigation is reportedly in the early stages. WSJ, U.S. Probes Morgan Stanley; WPost, Justice investigating mortgage-related transactions at Morgan Stanley.