Morgan Stanley Unit Hit With $142M Loan Investment Suit

Law360, New York (March 01, 2012, 1:19 PM ET) -- A mortgage loan trust hit a unit of Morgan Stanley & Co. Inc. on Wednesday with a $142 million suit claiming the financial giant breached contractual agreements by making false representations about the safety of a home loan investment pool.

Morgan Stanley Mortgage Capital Inc. had warranted to the trust that none of the mortgages in the investment pool was in breach or default and that none contained so-called "balloon loans" with spiraling interest obligations, according to the complaint, filed in New York state court....
To view the full article, take a free trial now.
Try Law360 for free for seven days
Already a subscriber? Click here to login

Already have access?

  1. Forgot your password?
  2. Sign In

Get instant access to the one-stop news source for business lawyers

Required