BMA kicks off campaign to improve due diligence

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The Bond Market Association has held the first of what promises to be a series of meetings with its member firms to discuss whether it should develop a set of best practice guidelines for due diligence in underwriting bonds.

The initiative comes just weeks after Wall Street firms shelled out a record $6 billion to WorldCom bondholders to settle a class action lawsuit which accused WorldCom’s underwriters of failing to adequately examine the telecom company’s financial health.