Nuns to sue Morgan Stanley over investment bonds

A group of Irish nuns have launched legal action against US investment bank, Morgan Stanley.

The Sisters of Charity of Jesus and Mary, the Holy Faith Sisters and more than 80 other Irish investors have joined forces to sue the bank relating to investment bonds which collapsed by as much as 97%.

The nuns, taking the action in London, allege that Morgan Stanley contractually assured them the bonds would be sold immediately if downgraded to a certain level.

According to the claim, its alleged Morgan Stanley waited five months before selling the bonds, making $11m, but by then the bonds were worth a fraction of what the nuns paid.