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subprime mortgage 15 articles

Regions eyes Morgan Keegan sale as investment arm settles Fraud claims

Morgan Keegan & Co. Inc., an investment brokerage owned by Regions Financial Corp., has announced a $200 million settlement in relation to charges of consumer fraud stemming from investments tied to the mortgage bond market. The company has been battling numerous lawsuits brought on behalf of clients that allege Morgan Keegan falsely represented proprietary mutual funds as “low risk” investments when they were actually tied to the volatile mortgage market. According to a report in the Memphis Daily News, more than 300,000 investors lost over a billion dollars when the subprime mortgage meltdown drained the funds seemingly overnight. Morgan Keegan ... Read More

Judge upholds $1.4 million award for Morgan Keegan investment loss

Yesterday a judge upheld the decision made last fall that holds Morgan Keegan responsible for a $1.4 million loss by investor Horace Grant. The retired Chicago Bulls basketball star sued Regions Morgan Keegan for losses resulting from his investments in mutual funds recommended by the financial management company. Morgan Keegan appealed the decision, saying arbitrators had already made up their minds against the investment company when they heard the case. In his 27-page opinion, U.S. District Judge S. James Otero disagreed with Morgan Keegan, and sided with the Financial Industry Regulatory Authority (FINRA), which is acting as arbitrator in these ... Read More

FINRA awards $1.4 million to NBA star for Regions Morgan Keegan losses

On Friday, the Financial Industry Regulatory Authority (FINRA) awarded $1.4 milion to ex-Chicago Bulls star Horace Grant as compensation for losses the NBA star suffered as a result of investments in Regions Morgan Keegan bond funds. There are numerous lawsuits pending against the financial management company as a result of the funds, which investors allege were represented as low-risk, but which were actually tied to the volatile subprime mortgage market. When the market crashed, investors lost up to 80 percent of their investment, almost overnight. FINRA is the money management industry’s regulatory organization, and is overseeing hundreds of arbitration complaints ... Read More

Investors, 6 Morgan Keegan, 0

Regions Morgan Keegan has suffered it sixth straight loss in arbitration negotiations with investors who claim they lost substantial amounts of money when RMK misrepresented its bond funds. The suits claim RMK presented the bond funds as low-risk investments, when they actually were tied to the volatile mortgage bond market. When the subprime mortgage lending crisis reached a peak, many investors lost up to 80 percent of their money almost overnight. This week, Morgan Keegan & Co., a subsidiary of Regions Financial Corp., was ordered to pay $950,000 to investor Jerome Woods, whose claim included allegations of fraud, negligence and ... Read More

Helios bond funds set for liquidation

Three former Regions Morgan Keegan bond funds that were renamed under the Helios brand when Hyperion Brookfield Asset Management acquired them are now set for liquidation, pending stockholder approval. The troubled funds were acquired after suffering significant and sudden losses during the subprime mortgage crisis. Regions Morgan Keegan is defending hundreds of arbitration lawsuits regarding the funds, which were backed by risky mortgage-related assets. Investors allege the funds were represented as low-risk securities, but when the mortgage crisis hit beginning in the middle of 2007, the funds suffered staggering and sudden losses. Some funds dropped between 62 and 82 percent ... Read More

Regions selling off RMK Select Funds

Today the Birmingham Business Journal reported that Regions Financial Corp., which is headquartered in Birmingham, Ala., is selling off its 11 Regions Morgan Keegan (RMK) Select Funds. These funds are currently managed by Regions’ investment arm, Morgan Keegan & Co., based in Memphis. The funds will be sold to Pioneer Investment Managment, Inc., the Journal reports. The deal is pending approval by Regions shareholders, but if approved will remove the financial company from the mutual funds business entirely, according to the Journal. This news follows on the heels of other efforts by Regions to divest itself of investment funds following ... Read More

RMK fund set for liquidation

The Memphis Daily News recently reported that Hyperion Brookfield Asset Management, which in July took over administration of seven Regions Morgan Keegan funds under fire for misrepresentation, will liquidate one of the funds, pending shareholder approval. The fund in question is the Regions Morgan Keegan Select Short Term Bond Fund. Hyperion took over management of the Morgan Keegan investment arm of Regions after several funds suffered steep and sudden drops in value as a result of their connection to the subprime mortgage securities market. On Dec. 30, the Daily News announced that Hyperion had changed the names of seven former ... Read More

RMK funds change names to reflect new Helios brand

According to a report in the Memphis Commercial Appeal today, seven former Regions Morgan Keegan investment funds have changed their names, and six have new trading symbols. The changes reflect the change in management from Regions Financial to Hyperion Brookfield Asset Management, which took over the troubled investment arm in July. Each fund name now starts with Helio, which is Hyperion’s brand name. The Commercial Appeal quotes Marion Hayes, a spokesperson for Hyperion, as saying, “It’s not right for these funds to be named Regions Morgan Keegan funds when they’re managed by us.” The change affects four closed-end funds and ... Read More

Morgan Keegan buys investment bank

Today The Birmingham (Ala.) News reported that Morgan Keegan & Co., the investment arm of Regions Financial Corp., has purchased an investment bank, Burke Capital Group, based in Atlanta. The sale price was not released. Regions Financial Corp. is based in Birmingham. According to its company web site, Burke Capital Group is an independent investment banking firm that provides “superior corporate finance and mergers and acquisitions advisory services to financial institutions and middle market companies.” The company was founded in 1995. In 2006, the SNL Financial’s Bank M&A Scoreboard listed Burke at No. 1 among the Top Southeast regional financial ... Read More

Financial columnist fills RMK stocking with coal

Chuck Jaffe, a senior columnist for MarketWatch, put Regions Morgan Keegan on his 13th annual Lump of Coal Awards list, which points out those companies and individuals who he believes should be on Santa’s “naughty” list in the world of investment funds. The list was published today on SFGate, an online publication of the San Francisco Chronicle. Jaffe placed RMK in the category “Not knowing when to quit,” citing the investment company’s insistence on keeping funds tied to high-risk subprime mortgages active even after they suffered losses topping 80 percent. The columnist already had named RMK’s manager James Kelsoe as ... Read More