Morgan Stanley Fights For TBA Claims In Lehman Dispute

Law360, New York (November 17, 2011, 9:36 PM EST) -- Morgan Stanley's investment management arm on Thursday asked the New York judge overseeing the liquidation of Lehman Brothers Inc. to rule that contracts used to trade billions of dollars of mortgage-backed securities every day should themselves be considered securities under the law.

The dispute stems from so-called TBA, or to-be-announced, contracts, which are agreements that institutional and other investors use to purchase agency MBS, or those that are backed by the federal government's three mortgage guarantee programs. About $300 billion of such MBS — and possibly...
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