According to a recent Bloomberg.com article, Regions Financial Corp. (RF) has ended talks to sell its Morgan Keegan brokerage unit to Stifel Financial Corp. (SF) The two sides presumably could not agree on the sale terms. The company is said to still be in talks with St. Peters burg, Florida based brokerage Raymond James Financial about a possible sale of Morgan Keegan.
Morgan Keegan has been under heavy legal pressure from state and federal securities regulators as well as investors who purchased shares of the company’s seven proprietary RMK bond and income funds. Regulators have accused the firm and fund manager of fraud in the marketing and sale of the flagship Intermediate Bond Fund. The five other funds contained similar instruments and have been the subject of hundreds of FINRA arbitration claims. The company entered into a consent order and agreed to pay $200 million to settle the claims.
If you have lost money investing in one of the seven RMK bond and income funds, please contact our office for a free case evaluation.