US - The state of Oregon is suing the former Bear Stearns for allegedly misleading investors, including the state's pension fund, in mortgage-backed securities.
Oregon Treasurer Ted Wheeler and attorney general John Kroger said the Oregon Public Employee Retirement Fund lost $17m through investments in mortgage-backed securities sold by the firm in 2006 and 2007. They said the securities were "vastly exaggerated in value and quality".
At the time, Bear sold $17.5bn in mortgage-backed certificates touted as high quality, investment-grade securities. But some $17bn worth was eventually downgraded to below investment grade, and some eventually downgraded to junk bond status.
"We believe that these junk investments were intentionally mislabeled and all Oregonians are still reeling from the economic fallout," said Wheeler. "If you hurt Oregonians financially, we are coming after you."
Oregon joins public employees' retirement funds in Iowa and Mississippi, the Boilermaker Blacksmith National Pension Trust and the City of Fort Lauderdale Police and Fire Retirement System among others, in an existing class action.
Bear Stears was taken over by J.P. Morgan in 2008. Officials at J.P. Morgan could not immediately be reached for comment.
HMRC has confirmed providers operating relief at source pension schemes can continue to collect automatic tax relief at a basic rate of 20% under new Scottish Income Tax rules.
The Pensions Regulator (TPR) is seeking "improved" powers to set a schedule of contributions in defined benefit (DB) schemes in the government's upcoming white paper, it has revealed.
New regulatory rules which require providers and advisers to produce annuity illustrations will not solve the problem of consumer detriment as they are "fundamentally" flawed, according to Retirement Advantage.
Paul Budgen is set to join financial technology and auto-enrolment (AE) firm Smart Pension as director of business development.