Morgan Stanley In Talks To Pay $500 Mn Fine To Settle Mortgage-Bond Probe – Media – 21 April 2015

RT logoUS bank Morgan Stanley is reportedly in talks with the Attorney General of New York over the payment of about $500 million to settle claims for misleading investors with mortgage-backed securities issued before the financial crisis.

A deal between the bank and New York’s top litigator, Eric Schneiderman, is likely to include some cash from Morgan Stanley as well as consumer relief compensation, the Wall Street Journal reports.

Over a half the settlement will be provided as aid to struggling homeowners, though the form of consumer relief hasn’t yet become clear, according people familiar with the matter told the Wall Street Journal.

Morgan Stanley is expected to publish its financial reporting for the first quarter on Monday, in which it could clarify whether it will increase its legal reserves.

Read the full story at: /link to original article


Comments are closed.