Morgan Stanley to pay $3.2 billion to settle mortgage chargesStaff writer ▼ | February 11, 2016
Morgan Stanley will pay about $3.2 billion to settle charges that it misled investors in residential mortgage-backed securities that later soured during the financial crisis.
Fine Morgan Stanley failed to disclose information
Of the $3.2 billion to be paid, $2.6 billion will go toward resolving claims brought by the U.S. Justice Department.
Another $550 million will go to New York and another $22.5 million will settle a case with Illinois.
The Justice Department said that as part of the accord, Morgan Stanley acknowledged that it failed to disclose information to prospective investors about the quality of the mortgages. ■