MetLife Targets Morgan Stanley Over $757M In Toxic RMBS

Law360, New York (April 26, 2012, 4:42 PM EDT) -- Morgan Stanley was hit Wednesday with another suit over its issuance of residential mortgage-backed securities, this time in New York state court, over claims it hid the low quality of $757 million worth of RMBS purchased by Metropolitan Life Insurance Co.

MetLife alleges that Morgan Stanley made fraudulent misrepresentations about the quality of the loans underlying the RMBS the insurer purchased, all the while knowing the loans were high risk and were not originated according to underwriting standards.

“In truth, and as MetLife and the world...
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