{"id":5566,"date":"2014-02-04T00:00:00","date_gmt":"2014-02-04T06:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2014\/02\/morgan_stanley_to_pay_125b_in"},"modified":"2022-05-05T11:58:05","modified_gmt":"2022-05-05T16:58:05","slug":"morgan-stanley-to-pay-125b-in","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/morgan-stanley-to-pay-125b-in\/","title":{"rendered":"Morgan Stanley to Pay $1.25B in Mortgage-Backed Securities Lawsuit by FHFA"},"content":{"rendered":"\n

Morgan Stanley (MS)<\/a> will pay $1.25 billion to the Federal Housing Finance Agency to resolve the latter\u2019s securities fraud lawsuit <\/a>accusing the firm of selling mortgage bonds to Freddie Mac (FMCC) and Fannie Mae without apprising them of the risks. A lot of the loan involved in this MBS lawsuit against Morgan Stanley came from subprime lenders, such as IndyMac and New Century. The loans were packaged into bonds. <\/p>\n

The brokerage firm, which sold $10.58 billion in mortgage-backed securities that were issued between September 2005 and September 2007, is the eighth financial firm to settle with FHFA over the more than $200 billion in securities that came with offering materials that purportedly misled the two government-backed lenders about the quality of the loans behind their investments. FHFA sued 18 financial institutions asking for unspecified damages in 2011. <\/p>\n

To date, the government agency has collected about $9.1 billion. Recent settlers include Deutsche Bank AG (DB), which is paying $1.93 billion and JP Morgan Chase (JPM)<\/a>, which settled for $4 billion. Among those that have yet to settle with FHFA is Bank of America Corp. (BAC)<\/a>, which is being sued, along with two of its firms\u2014Merrill Lynch & Co. (MER) <\/a>and Countrywide Financial Corp.\u2014for over more than $57.4 billion in securities. FHFA wants at least $6 billion from them.<\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

Morgan Stanley (MS) will pay $1.25 billion to the Federal Housing Finance Agency to resolve the latter\u2019s securities fraud lawsuit accusing the firm of selling mortgage bonds to Freddie Mac (FMCC) and Fannie Mae without apprising them of the risks. A lot of the loan involved in this MBS lawsuit against Morgan Stanley came from […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3787,3757],"tags":[2616],"class_list":["post-5566","post","type-post","status-publish","format-standard","hentry","category-morgan-stanley","category-mortgagebacked-securities","tag-fhfa"],"yoast_head":"\nMorgan Stanley to Pay $1.25B in Mortgage-Backed Securities Lawsuit by FHFA — Investor Lawyers Blog — February 4, 2014<\/title>\n<meta name=\"description\" content=\"Morgan Stanley (MS) will pay $1.25 billion to the Federal Housing Finance Agency to resolve the latter\u2019s securities fraud lawsuit accusing the firm of — February 4, 2014\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link 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