Morgan Keegan & Company is the securities brokerage and asset management subsidiary of Regions Financial Corporation, a publicly-held company based in Birmingham. Regions has been plagued by allegations of mismanagement and deep customer dissatisfaction over recent years. Regions has also assumed operations of Integrity Bank of Georgia, which was placed into receivership by the FDIC as a result of the collapsing U.S. housing market.
There are currently allegations that Morgan Keegan misrepresented the risk of investing in certain bond funds. Morgan Keegan's misrepresentation to investors may constitute fraud, and may give rise to a flood of securities arbitration and litigation.
Following losses in key Morgan Keegan bond funds, the SEC and the Alabama Securities Commission launched investigations into allegations of fraud. The Morgan Keegan Select Intermediate Bond Fund (RIBCX) and the Morgan Keegan Select High Income Fund (MKHIX), have lost 50-60% of their value. In addition 4 closed-end mutual funds have lost upward of 50% of their value, RMK High Income Fund (RMH), RMK Strategic Income Fund (RSF), MK Multi Sector High Income Fund (RHY) and RMK Advantage Income Fund (RMA). Class actions have also been filed against Morgan Keegan for bond fund fraud.
Other affected Bonds with Morgan Keegan:
- Regions MK Select High Income - C
- Regions MK Select High Income - I
- Regions MK Select Intermediate Bond Fund - A
- Regions MK Select Intermediate Bond Fund - I