Posted On:
July 20, 2007
INVESTORS WITH REGIONS MORGAN KEEGAN, BEAR STEARNS AND MORGAN STANLEY SUFFER: REPORTS OF LOSSES IN INVESTMENTS BACKED BY SUBPRIME MORTGAGES THREATEN MUTUAL FUNDS
Investors have recently suffered huge losses in investments backed by subprime mortgages and other risky loans. Bear Stearns recently announced that two of its funds had failed, and Regions Morgan Keegan fund manager Jim Kelsoe faces criticism for using leverage to concentrate investments in risky loans.
Kelsoe is quoted as having admitted that "intoxication" with high-yield subprime investments kept him from pulling out completely. As a result of his decisions, investors in Regions Morgan Keegan funds faced more risk associated with losses in subprime loans than investors in most other mutual funds.
Read the Bloomberg News story by Jody Shenn published in the International Herald Tribune:
Subprime mortgages take toll on fund manager.
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