Charles Schwab filed arguments in a federal court in San Francisco on March 19 to try to preclude the Securities and Exchange Commission (SEC) from suing it over its YieldPlus fund, which had nearly 50% of its assets in MBS, Bloomberg reports.

Once one of the biggest short-term bond funds in the world, with $13.5 billion at its peak in 2007, YieldPlus lost 35%, before dividends, in 2008. Today, a mere shell of its former self, it stands at a mere $184 million.

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