Abu Dhabi bank sues in U.S. over risky investments

Abu Dhabi bank sues in U.S. over risky investments

www.reuters.com

NEW YORK, Aug 25 (Reuters) - A United Arab Emirates bank sued Morgan Stanley (MS.N: Quote, Profile, Research, Stock Buzz), the Bank of New York Mellon Corp (BK.N: Quote, Profile, Research, Stock Buzz) and ratings agencies Moody's and S&P on Monday, accusing them of fraud in operating a fund that collapsed in the U.S. credit crisis.

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Well, doesn't look like the Soveriegn Wealth Funds are going to be rushing to rescue Wall Street. Much like the States started to pile on after one or two filed suit against Countrywide, it looks like that foreign investors who've been burned by the shenanagins on WS are starting to take action. I'm going to predict that this will be the first of many foreign entities that will seek recourse. Not only are they going after the banks that created the toxic instruments, but they are also suing the ratings agencies that rated such instruments highly.

www.reuters.com
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