Results 1 to 2 of 2
Thread Information
Users Browsing this Thread
There are currently 1 users browsing this thread. (0 members and 1 guests)
-
02-11-2016, 05:07 PM #1
Morgan Stanley to pay $3.2 BILLION to end mortgage probe
Morgan Stanley to pay $3.2B to end mortgage probe
By Kevin Dugan
February 11, 2016 | 10:44am
Morgan Stanley is paying $3.2 billion — the largest fine in its history — to settle claims that it sold soured mortgage-backed bonds in the run up to the financial crisis.
The Wall Street bank peddled the securities to investors even though traders knew many of the underlying home loans were underwater, according to the settlement with New York Attorney General Eric Schneiderman.
Traders openly bragged about using “magic” to make the bonds look better than they actually were, according to the settlement released on Thursday morning.
Under the terms of the deal, the state will get $550 million to help community rebuilding efforts, the AG’s office said.
“Today’s agreement is another victory in our efforts to help New Yorkers rebuild in the wake of the financial devastation caused by major banks,” Schneiderman said in a statement.
Morgan Stanley, led by CEO James Gorman, is the latest bank to get fined over the sale of busted mortgage-backed securities. Last month, Goldman Sachs paid $5 billion to settle similar charges.
“We are pleased to have finalized these settlements involving legacy residential mortgage-backed securities matters,” according to a statement from the bank. “The firm has previously reserved for all amounts related to these settlements.”
Shares of Morgan Stanley were down 3.3 percent, at $21.96, on Tuesday morning amid a broader market sell-off.
The Post broke the news of the settlement ahead of the announcement.
http://nypost.com/2016/02/11/morgan-...ortgage-probe/
NO AMNESTY
Don't reward the criminal actions of millions of illegal aliens by giving them citizenship.
Sign in and post comments here.
Please support our fight against illegal immigration by joining ALIPAC's email alerts here https://eepurl.com/cktGTn
-
04-25-2019, 05:31 PM #2
Morgan Stanley to pay $150 million to settle California crisis-era mortgage charges
By Jonathan Stempel
,Reuters•April 25, 2019
FILE PHOTO: A sign is displayed on the Morgan Stanley building in New York U.S., July 16, 2018. REUTERS/Lucas Jackson More
By Jonathan Stempel
(Reuters) - Morgan Stanley will pay $150 million to settle charges it misled two large California public pension funds about the risks of mortgage-backed securities they bought in the years leading up to the 2008 global financial crisis.
The settlement announced on Thursday by California Attorney General Xavier Becerra resolves an April 2016 lawsuit filed by his predecessor Kamala Harris, who is now a U.S. senator.
Becerra said the California Public Employees' Retirement System (CalPERS) will receive $122 million from the settlement, while the California State Teachers Retirement System (CalSTRS) will receive $8 million. The other $20 million will cover costs and help fund other investigations.
Morgan Stanley denied wrongdoing. A spokesman said the accord is the New York-based bank's last regulatory settlement related to the financial crisis.
California said Morgan Stanley overstated the quality of subprime loans from lenders such as New Century Financial, which went bankrupt in 2007, that it bundled into seemingly safe securities that CalPERS and CalSTRS bought from 2003 to 2007.
The bank was also accused of failing to remove poor-quality loans from those securities, and hiding the risks because disclosure could become a "relationship killer" prompting lenders to send future business elsewhere.
"Morgan Stanley lied about the risks of its products and put profits over teachers and public employees who relied on its advice," Becerra said.
The lawsuit was one of hundreds accusing banks of misleading investors in the marketing and sale of residential mortgage-backed securities. Morgan Stanley agreed in February 2016 to pay $3.2 billion to resolve federal and state claims over those securities.
https://www.yahoo.com/news/morgan-st...5--sector.htmlNO AMNESTY
Don't reward the criminal actions of millions of illegal aliens by giving them citizenship.
Sign in and post comments here.
Please support our fight against illegal immigration by joining ALIPAC's email alerts here https://eepurl.com/cktGTn
Similar Threads
-
Morgan Stanley Agrees To $2.6 Billion Mortgage-Backed Securities Settlement
By JohnDoe2 in forum Other Topics News and IssuesReplies: 0Last Post: 02-25-2015, 10:09 PM -
Citigroup to Pay $7 Billion to Resolve Mortgage Probe
By JohnDoe2 in forum Other Topics News and IssuesReplies: 0Last Post: 07-14-2014, 11:29 AM -
J.P. Morgan to Settle Madoff Probe for More Than $1 Billion
By JohnDoe2 in forum Other Topics News and IssuesReplies: 0Last Post: 12-12-2013, 06:58 PM -
Morgan Stanley Bonds Trade at Junk Pricing, Downgrades Coming; Will Morgan Stanley Su
By AirborneSapper7 in forum Other Topics News and IssuesReplies: 0Last Post: 06-03-2012, 12:17 PM -
Morgan Stanley settles with MBIA over mortgages $1.2 BILLION
By JohnDoe2 in forum Other Topics News and IssuesReplies: 0Last Post: 12-13-2011, 01:56 PM
Border Patrol union says Biden is flying in migrants so 'border...
03-28-2024, 06:25 PM in illegal immigration News Stories & Reports