Morgan Stanley, HSBC Trust and Distributors

[pweesng]

Hi Guys,

Just for discussion sake, and perhaps any lurking lawyers can advise as well.

For those who had invested in the Pinnacles Note Series 1 to 10, you would have been informed that there has been a credit default situation (9 and 10 with mandatory redemption event) occurring with 5 entities:-

1) Lehman Brothers
2) Fanny Mae
3) Freddie Mac
4) 2 icelandic banks

My question is this, since Fanny and Freddie is directly under the control of the US Goverment and has been fulfilling its obligation in terms of coupon payment and principle redemption, can Morgan Stanley declare a credit default situation?

Secondly, as individuals writing to the arranger (in this case woudl be Morgan Stanley) they may not address our concern. Why isn't the trustee who is suppose to act on behalf of the note holders asking the arranger the same questions?

Thirdly, do you think the distributors has a responsibility to track such events on behalf of the investors?

all views are welcome. but please keep it friendly and useful.

thanks heaps

pweesng

 

[Zombie]

In the prospectus,

Mandatory Redemption =>
if any or all of the underlying assets......