Massachusetts’ top securities regulator said on Friday that the state had sued Merrill Lynch over CDOs sold to the city of Springfield, Mass. In a complaint filed by Secretary William Gavin’s office, the state said it is seeking an order “to disgorge all profits attributable to the alleged wrongdoing,” as well as calling for an independent consultant to review “systemic supervisory breakdowns and incentives within Merrill that allowed the alleged wrongdoing to occur.” HW had noted earlier that Merrill Lynch had agreed to settle with the city over what it said was an “unauthorized” purchase, reimbursing $13.9 million in investment funds after Springfield found itself facing mounting losses over mortgage-related CDOs it didn’t know it owned. Click here for a copy of the complaint.
Massachusetts Sues Merrill Lynch on CDO Sales
Most Popular Articles
Latest Articles
Lower mortgage rates attracting more homebuyers
An often misguided premise I see on social media is that lower mortgage rates are doing nothing for housing demand. That’s ok — very few people are looking at the data without an agenda. However, the point of this tracker is to show you evidence that lower rates have already changed housing data. So, let’s […]
-
Rocket Pro TPO raises conforming loan limit to $802,650 ahead of FHFA’s decision
-
Show up, don’t show off: Laura O’Connor is redefining success in real estate
-
Between the lines: Understanding the nuances of the NAR settlement
-
Down payment amounts are exploding in these metros
-
Commission lawsuit plaintiff Sitzer launches flat fee real estate startup
