Morgan Stanley E-Mails Show Doubts About Doomed Vehicle
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Morgan Stanley executives warned a partner in the Rhinebridge structured investment vehicle that mortgages underlying the SIV could cause it to fail, according to e-mails cited by investors who were sold $100 million of the fund’s notes just days after the warning.
Officials from Morgan Stanley met with IKB Deutsche Industriebank AG executives in July 2007 and warned them about the stability of Rhinebridge, which they set up together, according to e-mails unsealed as part of a lawsuit by two institutional investors filed in Manhattan federal court.