Morgan Stanley Returns $67M MBS Row To Federal Court

Law360, New York (June 14, 2012, 2:43 PM EDT) -- Morgan Stanley on Wednesday again removed to Texas federal court a Federal Deposit Insurance Corp. lawsuit accusing the financial giant of making false statements and leaving out information in the sale and underwriting of $67 million in residential mortgage-backed securities to failed Franklin Bank SSB.

The FDIC, acting as receiver for the Houston bank, in November filed two complaints in Texas state court alleging Franklin purchased RMBS that were underwritten or sold by Morgan Stanley in connection with four securitizations.

The offering documents relating to the...
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