- Parent Category: Web Links
- Published on Wednesday, 16 March 2016 16:05
- Hits: 556
Hall of Shame: Morgan Stanley to Pay $3.2 Billion Over Flawed Mortgage Bonds
The job of the most honest seller is to sell you, not to give you reasons to buy from a competitor. That over-riding reality drives the free-enterprise system, and places a responsibility on you.
FoolProof's Hall of Shame is here to remind you why a healthy dose of skepticism should rule your decisions before dealing with anyone who wants to touch your money or your general welfare.
February 11, 2016
Morgan Stanley will pay $3.2 billion to strike a settlement with state and federal authorities over the Wall Street firm's creation of mortgage-backed bonds before the financial crisis.
"We are pleased to have finalized these settlements involving legacy residential mortgage-backed securities matters," a spokesman for the firm, Mark Lake, said in a statement.
As part of the settlement, Morgan Stanley will pay:
- $150 million in cash to New York State.
- $400 million in consumer relief.
- $22.5 million to the State of Illinois.
Previously, Morgan Stanley agreed to pay:
- $1.25 billion to the Federal Housing Finance Agency.
- $275 million to the Securities and Exchange Commission to settle investigations involving similar issues.
- In total, Morgan Stanley has paid about $5 billion to members of the residential mortgage-backed securities working group.
For More Information
FoolProof resources to help you: