Morgan Stanley Dodges FHFA's Claims Over RMBS Losses

Law360, New York (November 21, 2012, 1:58 PM EST) -- A New York federal judge has trimmed claims by the Federal Housing Finance Agency against Morgan Stanley and others over alleged deception concerning the value of billions in residential mortgage-backed securities, finding certain fraud claims weren’t specific enough.

The suit is just one of many brought by the FHFA targeting Wall Street banks, alleging the financial institutions lied to Fannie Mae and Freddie Mac about the quality of $200 billion in RMBS purchased by the government-backed entities. The FHFA argues that the banks were motivated to...
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