Morgan Stanley Hid Risks In $600M MBS Sale, Suit Says

Law360, New York (October 25, 2013, 2:01 PM EDT) -- Morgan Stanley is the latest bank to face the ire of the late Belgian banking behemoth Fortis Bank NA/SV, whose remnants sued in New York state court Thursday over allegations that Morgan Stanley misrepresented the risks in $600 million worth of mortgage-backed securities it sold.

Royal Park Investments SA/NV, which has been pursuing legal claims from Fortis' decimated structured credit portfolio since Fortis collapsed during the finance crisis, fired off the suit in Manhattan state court, alleging that Morgan Stanley lied about the quality of the...
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