Finra Looks At CDOs At Morgan Stanley, Barclays, Credit Suisse-Bloomberg

26th Jul 2010 13:34

DOW JONES NEWSWIRES The Financial Industry Regulatory Authority has sought information on the synthetic collateralized debt obligations created by Morgan Stanley (MS), Barclays PLC (BCS) and Credit Suisse Group (GS), with a focus on potential conflicts of interest, sales practices and how the instruments were chosen, Bloomberg News reported Saturday on its website, citing a person with direct knowledge of the situation. In part, Finra is looking into whether the banks had conflicts of interest by betting the CDOs would lose value. The brokerage regulator hasn't accused the three banks of wrongdoing. Finra didn't respond to requests for comment. Credit Suisse and Morgan Stanley declined comment. Barclays Capital spokesman Brandon Ashcraft said the firm doesn't comment on its communications with regulators. Full story at: www.bloomberg.com/news/2010-07-23/morgan-stanley-barclays-said-to-be-focus-of-finra-synthetic-cdo-probe.html -Dow Jones Newswires; 212-416-2900 (END) Dow Jones Newswires July 26, 2010 08:34 ET (12:34 GMT)