Merrill sued by RTC over GSL 'fraud.' (Merrill Lynch and Co., Resolution Trust Corp., Guarantee Security Life Insurance Co.)

National Underwriter Life & Health-Financial Services Edition, March, 1993 by Knowles, Robert G.

Resolution Trust Corp (RTC) charged Merrill Lynch and Company Inc and former executives of the bankrupt Guarantee Security Life Insurance Co (GSLIC) with 'massive fraud' in a federal suit filed in Feb, 1993. RTC accused Merrill Lynch of conspiracy in helping GSLIC deceive federally-chartered CenTrust Federal Savings Bank and Imperial Federal Savings Assn on investments which caused the savings and loan associations' bankruptcy. Merrill Lynch denies any connection with the investment transaction.

Alleging "massive fraud" against two of its failed federally-chartered thrifts, the Resolution Trust Corporation last month filed suit in a Jacksonville, Fla. federal district court against Merrill Lynch & Co., a former ML managing director, and the former officers of insolvent...

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