Morgan Stanley Unit Hit With $142M Loan Investment Suit

Law360, New York (March 1, 2012, 1:19 PM EST) -- A mortgage loan trust hit a unit of Morgan Stanley & Co. Inc. on Wednesday with a $142 million suit claiming the financial giant breached contractual agreements by making false representations about the safety of a home loan investment pool.

Morgan Stanley Mortgage Capital Inc. had warranted to the trust that none of the mortgages in the investment pool was in breach or default and that none contained so-called "balloon loans" with spiraling interest obligations, according to the complaint, filed in New York state court....
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