Merrill to Repay Massachusetts City for CDO Purchase:
Feb. 1 (Bloomberg) — Merrill Lynch & Co. agreed to pay Springfield, Massachusetts, $13.9 million to settle a dispute over collateralized debt obligations that tumbled in value.
The money will reimburse Springfield for the cost of the CDOs, securities tied to home loans and other debts shunned by investors as losses on subprime mortgages mounted. New York-based Merrill said it agreed to the refund after discovering its brokers bought the CDOs without the city’s “express permission.”
The money will reimburse Springfield for the cost of the CDOs, securities tied to home loans and other debts shunned by investors as losses on subprime mortgages mounted. New York-based Merrill said it agreed to the refund after discovering the purchase was made without the city’s consent.
How nice of them, considering the purchase was made without the city’s consent.
0 Response to “Merrill to Repay Massachusetts City for CDO Purchase”