Morgan Stanley In Tentative $275M Pact With SEC Over MBS

Law360, New York (February 25, 2014, 6:23 PM EST) -- Morgan Stanley has reached a tentative $275 million settlement to resolve a U.S. Securities and Exchange Commission investigation into its mortgage-backed securities deals during the financial crisis, the bank said on Tuesday.

The bank said in an SEC filing that it had reached an "agreement in principle" on Jan. 30 with the SEC enforcement division. The probe relates to subprime residential mortgage-backed securities, or RMBS, that Morgan Stanley sponsored and underwrote in 2007, the company said. Under the proposed settlement, the SEC would accuse Morgan Stanley...
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