Morgan Stanley Says MetLife Had Role In $757M RMBS Losses

Law360, New York (March 6, 2013, 2:43 PM EST) -- Metropolitan Life Insurance Co. can't blame Morgan Stanley for its losses on $757 million worth of residential mortgage-backed securities when the insurer's affiliate originated loans in the securities, the investment bank's attorney told a New York state judge during a hearing Wednesday.

Morgan Stanley allegedly made fraudulent misrepresentations about the quality of the loans in the RMBS that MetLife bought even though it knew the loans were very risky and didn't meet their stated underwriting standards, according to MetLife.

But James P. Rouhandeh of Davis Polk...
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