Morgan Stanley To Pay $63M To Settle Claims Over Sale Of Mortgage-Backed Securities

(February 3, 2016, 2:42 PM EST) -- ARLINGTON, Va. — Morgan Stanley will pay almost $63 million to settle claims in five different lawsuits filed in various state and federal courts brought by the Federal Deposit Insurance Corp. (FDIC) alleging that Morgan Stanley and its related entities misrepresented the investment quality of residential mortgage-backed securities (RMBS) it sold to three failed banks, according to a Feb. 2 FDIC announcement.

(Settlement agreement available. Document #57-160216-054B.)

Under the terms of the settlements, which are subject to court approval, Morgan Stanley will pay $62,950,000 by Feb....
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