{"id":6998,"date":"2019-05-06T11:01:50","date_gmt":"2019-05-06T16:01:50","guid":{"rendered":"https:\/\/www.investorlawyers.com\/?p=6998"},"modified":"2022-12-09T17:20:36","modified_gmt":"2022-12-09T23:20:36","slug":"morgan-stanley-to-pay-150m-over-mortgage-backed-securities","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/morgan-stanley-to-pay-150m-over-mortgage-backed-securities\/","title":{"rendered":"Morgan Stanley To Pay $150M Over Mortgage-Backed Securities"},"content":{"rendered":"<p>\t\t\t\t<a href=\"https:\/\/www.investorlawyers.com\/investor-claims\/brokerage-firm-misconduct\/morgan-stanley\/\" target=\"_blank\" rel=\"noopener noreferrer\">Morgan Stanley (MS)<\/a> has agreed to a $150M settlement with the <a href=\"https:\/\/www.calstrs.com\" target=\"_blank\" rel=\"noopener noreferrer\">California State Teachers&#8217; Retirement System<\/a> (CalSTRS) and the <a href=\"https:\/\/www.calpers.ca.gov\" target=\"_blank\" rel=\"noopener noreferrer\">California Public Employees\u2019 Retirement System <\/a>(CalPERS) to resolve claims that it misled investors about the risks involved in mortgage-backed securities, which both pension funds purchased from 2003 to 2007. CalSTRS and CalPERS lost millions of dollars from investing in these MBSs prior to the 2008 financial crisis.<\/p>\n<p>In a <a href=\"https:\/\/oag.ca.gov\/news\/press-releases\/attorney-general-becerra-announces-150-million-settlement-against-morgan-stanley\" target=\"_blank\" rel=\"noopener noreferrer\">news release<\/a>, <a href=\"https:\/\/oag.ca.gov\" target=\"_blank\" rel=\"noopener noreferrer\">California Attorney General Xavier Becerra<\/a> accused Morgan Stanley of placing profits over the pension funds\u2019 public employees and teachers when the firm didn\u2019t fully disclose the MBSs\u2019 risks. These complex investments package together thousands of mortgage loans, and not all of the loans share the same level of quality.<\/p>\n<p>Mr. Becerra\u2019s office, which conducted a probe into Morgan Stanley\u2019s handling of MBS sales, found that the brokerage firm did not \u201caccurately\u201d portray many of the underlying mortgages&#8217; \u201ctrue\u201d traits. Meanwhile, the broker-dealer allegedly overstated the quality of certain subprime loans, including those from New Century Financial, which eventually went bankrupt. Morgan Stanley is accused of knowing about these misrepresentations but doing nothing to remedy the matter.<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/morgan-stanley-to-pay-150m-over-mortgage-backed-securities\/\"  title=\"Continue Reading Morgan Stanley To Pay $150M Over Mortgage-Backed Securities\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Morgan Stanley (MS) has agreed to a $150M settlement with the California State Teachers&#8217; Retirement System (CalSTRS) and the California Public Employees\u2019 Retirement System (CalPERS) to resolve claims that it misled investors about the risks involved in mortgage-backed securities, which both pension funds purchased from 2003 to 2007. CalSTRS and CalPERS lost millions of dollars [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":445,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[4052,3757,3957],"tags":[3393,3394,2283],"class_list":["post-6998","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-institutional-investors","category-mortgagebacked-securities","category-pension-funds","tag-california-public-employees-retirement-system","tag-california-state-teachers-retirement-system","tag-morgan-stanley"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Morgan Stanley To Pay $150M Over Mortgage-Backed Securities &#8212; Investor Lawyers Blog &#8212; May 6, 2019<\/title>\n<meta name=\"description\" content=\"Morgan Stanley has agreed to pay a $150 million settlement after misleading investors in California regarding risks involved in mortgage-backed securities.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/morgan-stanley-to-pay-150m-over-mortgage-backed-securities\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Morgan Stanley To Pay $150M Over Mortgage-Backed Securities &#8212; 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