An order of nuns in Ireland is suing Morgan Stanley and Deutsche Bank for misleading them into buying $6.4 million dollars worth of bonds that were later sold illegally at a much lower value.
The case called 'The Sisters of Jesus and Mary vs. Morgan Stanley' was put down for trial at the Irish High Court on Tuesday.
Included in the lawsuit were the the Sisters of Charity of Jesus and Mary, the Holy Faith sisters and the Irish Veterinary Benevolent Fund.
The nuns allege that between January 2005 to December 2006, they were convinced to buy $6.4 million dollars of "so-called Hybrid Structured euro constant maturity swap notes" with promised returns of for promised dividend of 6.25 percent a year for four years.
They say Morgan Stanley contractually assured them that if the bonds went lower than that they would be sold immediately.
However, by January 2009, the bonds were downgraded to junk status by Standard & Poor's.
The lawsuit claims that Morgan Stanley never fulfilled their promise to sell and waited five months before selling.
Reuters reports that the bank made $11.2 million in the delay but the nuns lost heavily.
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