The Securities and Exchange Commission, state regulators and the Financial Industry Regulatory Authority (FINRA) announced today that Morgan Keegan & Co. and Morgan Asset Management have agreed to pay $200 million to settle fraud charges related to subprime mortgage-backed securities. Two Morgan Keegan employees also agreed to pay penalties for their alleged misconduct, including one who is now barred from the securities industry. The Memphis-based firms were accused last year of causing the false valuation of subprime mortgage-backed securities in five funds they managed. The firms’ parent company, Regions Financial Corp., also announced today that it was exploring “strategic alternatives” for the subsidiary.