Law360, New York (December 13, 2011, 1:29 PM ET) -- Morgan Stanley said Tuesday it would take a $1.2 billion post-tax loss this quarter to settle litigation with MBIA Inc. over Morgan Stanley’s mortgage-backed securities and end the bank’s involvement in a suit challenging MBIA’s restructuring.
As part of the settlement, MBIA will pay Morgan Stanley $1.1 billion, the Wall Street Journal reported.
Under the deal, Morgan Stanley will withdraw from litigation involving several major banks alleging MBIA fraudulently pulled more than $5 billion from its insurance unit during restructuring, and the bond insurer will drop...
Morgan Stanley To Take $1B Loss In MBIA Settlement
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