(Bloomberg) -- Eight former directors overseeing mutual funds for Morgan Keegan & Co. settled, without paying any penalties, U.S. regulatory claims that they allowed assets backed by subprime mortgages to be overvalued as the housing market collapsed in 2007.

The directors, who didn’t admit or deny the allegations, agreed to cease and desist from committing or causing any future violations of the Investment Company Act, the Securities and Exchange Commission said in an administrative order filed today.

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