According to a December 18, 2011 Memphis Commercial Appeal article, investor losses in the Morgan Keegan RMK family of bond funds could have been prevented had someone other than James Kelso Jr., the fund manager been watching the store. As it stands, investors, many of them retirees, lost close to a billion dollars when the funds crashed at the beginning of the credit and housing market meltdowns. Fund manager Kelso made significant and risky bets on sub prime mortgage paper and lost. Thousands of arbitration claims soon followed costing the firm millions in legal fees and FINRA arbitration awards. Now Regions Bank has put Morgan Keegan is up for sale but nobody is buying. Perhaps if state and federal securities regulators and Morgan Keegan’s in-house compliance would have done more, there would have been a happier ending for all involved.
The full article appears here.
If you have lost money investing in any of the six Morgan Keegan RMK bond funds, please contact our office for a free consultation regarding your options for pursuing recovery of your losses. Thank you.