Reports: Pension Fund Sues Wall Street Firm Over Subprime CDO

Published December 30, 2009, 2:00 p.m. EST

1 Min Read

The Employees' Retirement System of the Government of the Virgin Islands has reportedly sued Morgan Stanley, alleging investors in a subprime mortgage-related collateralized debt obligation were defrauded. According to combined news reports from Reuters and Bloomberg, the suit involves a $1.2 billion CDO called Libertas that originally carried the highest investment grade ratings possible. A Morgan Stanley spokeswoman declined to comment. Efforts to reach the Employees' Retirement System of the Government of the Virgin Islands were unsuccessful.

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