New York’s attorney general, Eric Schneiderman, is preparing a lawsuit against Morgan Stanley saying the firm omitted or misrepresented information on 30 subprime mortgage-backed securities deals.  This suit confirms the need for the Transparency Label Initiative^tm.

Had the Initiative been in existence, these deals would not have been awarded a label. Instead, they would have been listed under “Only for Blindly Gambling”.

This would have greatly reduced the pool of buyers for these securities.