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February 11, 2016
Morgan Stanley to pay $3.2B over faulty RMBS
Morgan Stanley will pay $3.2 billion to settle federal and state charges for misleading investors into purchasing residential mortgage-backed securities that went bad during the financial crisis, the New York attorney general's office said Thursday.
Of the $3.2 billion, $550 million will be allocated to New York.
Last year, Morgan Stanley agreed to pay $2.6 billion to the Department of Justice after its investigation into the firm's activities leading up to the financial crisis.
In December, NCUA announced it had accepted a $225 million settlement offer from Morgan Stanley over its sale of the subprime mortgage-backed securities to corporate credit unions. The settlement resolves claims arising from losses connected to four corporate credit unions' purchases of RMBS from the bank.
NAFCU supports NCUA in pursuing remedies to help make credit unions whole for the losses they incurred due to the corporates' failure, but it continues to advocate a refund to credit unions as soon as the agency is able.
NCUA has filed several other similar suits in reaction to the failures of five corporate credit unions after the financial crisis, and this settlement brings the total in legal recoveries to $2.48 billion.
Of the $3.2 billion, $550 million will be allocated to New York.
Last year, Morgan Stanley agreed to pay $2.6 billion to the Department of Justice after its investigation into the firm's activities leading up to the financial crisis.
In December, NCUA announced it had accepted a $225 million settlement offer from Morgan Stanley over its sale of the subprime mortgage-backed securities to corporate credit unions. The settlement resolves claims arising from losses connected to four corporate credit unions' purchases of RMBS from the bank.
NAFCU supports NCUA in pursuing remedies to help make credit unions whole for the losses they incurred due to the corporates' failure, but it continues to advocate a refund to credit unions as soon as the agency is able.
NCUA has filed several other similar suits in reaction to the failures of five corporate credit unions after the financial crisis, and this settlement brings the total in legal recoveries to $2.48 billion.
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