Community Trust Bank Sues Merrill Lynch

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Posted: 11:14 PM Jan 8, 2009
Last Updated: 11:14 PM Jan 8, 2009

1 comments

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Kentucky's largest state-chartered bank has sued Merrill Lynch for $40 million over failed securities bought through the investment firm.

Pikeville-based Community Trust Bank filed the suit in federal
court on New Year's Eve. Community Trust Bank claims it now holds
$9.9 million in worthless securities because of the deal.

The Lexington Herald-Leader reports that Community Trust says in
the suit that it bought the securities in January 2006 based on
Merrill Lynch's assertion that the securities were safe short-term
investments.

The securities were linked to Fannie Mae, the mortgage giant
that was taken over by the federal government and stopped paying
dividends.

The paper said it could not reach a Merrill Lynch spokesman for
comment. Phone and e-mail messages left by The Associated Press on
Wednesday were not immediately returned.
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Information from: Lexington Herald-Leader,
http://www.kentucky.com

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Posted by: k Location: pike on Jan 9, 2009 at 08:14 PM
Boo hoo. Poor Community Trust Bank finally is getting a taste of their own medicine, and they don't like the taste of being ripped off. Sounds to me thhey are getting their just dessert. This bank pretends to be honest and ethical, but I know for a fact they have been hhiding the criminal actions of two board members and are ripping families off. I hope the feds investigate them and seize the bank. They have ripped off people for many many years. Seems to me they wanted to unload the Merril Lynch assets to some other unsuspecting person, they are only mad because they have to eat this. Karma comes at you no matter who you are or how powerful you think you are.

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