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subprime mortgages 5 articles

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

Regions hit by double whammy

A combination of defaulted loans in the plunging housing market and unique woes with its Morgan Keegan & Co. investment arm caused shares of Regions Financial Corp. stock to plunge 73 percent in the past year, according to a report in The Birmingham News. The company is headquartered in Birmingham. The housing market’s decline is affecting the bottom line at banks nationwide, but the situation has dealt Regions a double-whammy in the shape of fallout from its Morgan Keegan mutual fund investments. The financial giant is facing a number of lawsuits with investors saying they were promised low-risk funds but ... Read More

Subprime Mess at Morgan Keegan

Another class-action lawsuit related to issues regarding the disclosure of subprime debt obligations surfaced in early February when the law firm of Chitwood, Harley, Harnes LLP filed against certain mutual funds offered by Morgan Keegan Select Fund Inc. The suit, filed in Tennessee, claims that several of Morgan Keegan’s funds were invested in collaterized debt obligations (CDOs) that were backed by subprime mortgages. The lawsuit, like many others related to subprime debt obligations, claims investors who vested in the funds were not made aware of the fund’s full exposure to the risky loans until the loans faced greater deterioration in ... Read More