Morgan Stanley has agreed to pay $2.6 billion to settle claims made by the Justice Department regarding the sale of mortgage-backed securities during the financial crisis of 2008.
The company made the announcement in a filing with the Securities and Exchange Commission on Wednesday.
This settlement is the latest in a string tied to the mortgage practices that led to housing bubble, which was mostly responsible for the great recession. Back in December, Bloomberg explained:
"In August, Bank of America Corp. agreed to pay $16.7 billion for misrepresenting the quality of bonds backed by home loans. Citigroup Inc. reached a $7 billion deal in July, while JPMorgan Chase & Co. struck a $13 billion accord last year.
"Morgan Stanley has said for years that it faces government inquiries into how it handled home loans and related investment products. In a November regulatory filing, the firm said that some cases had reached 'advanced stages.' The investigations focus in part on the firm's due diligence on loans it bought and disclosures to investors."
Copyright 2020 NPR. To see more, visit https://www.npr.org.
