Comment on Morgan Stanley To Pay $3.2 Billion To Settle State & Federal Mortgage Cases

Morgan Stanley To Pay $3.2 Billion To Settle State & Federal Mortgage Cases

Almost exactly a year after Morgan Stanley agreed to pay $2.6 billion to close the books on a Department of Justice investigation related to it role in the subprime mortgage crisis, the company is set to pay another $3.2 billion to settle federal and state allegations that it deceived investors in toxic mortgage-backed securities. Morgan Stanley employees were accused of misleading investors about the quality of the residential mortgages that were tied to these securities.

 

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