Law360, New York (February 11, 2016, 10:11 AM ET) — 6-Pack Bank and Global BrokerDealer Morgan Stanley agreed today to pay $3.2 billion to resolve claims that it misled investors about mortgage-backed securities before the financial crisis, New York Attorney General Eric Schneiderman said.
The settlement is the latest among big banks related to the financial crisis, and ends government claims that Morgan Stanley misrepresented to investors the mortgages it packaged into securities.
The settlement is the latest among big banks related to the financial crisis, bringing to a close government claims that Morgan Stanley told investors that the mortgages it packaged into securities were of higher quality than was actually the case. The firm’s misstatements cost investors billions of dollars and the problematic mortgages helped cause many homeowners to lose their homes or suffer significant financial losses, Schneiderman 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.
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