Morgan Stanley, Wells Fargo Face Clash Over $73B In MBS

Law360, New York (September 19, 2012, 4:44 PM EDT) -- Investors that wrangled a hefty settlement from Bank of America Corp. have turned their sights on Morgan Stanley and Wells Fargo & Co., setting up potential litigation by notifying the two banks Wednesday that they are in default on a combined $73 billion in mortgage-backed securities.

Gibbs & Bruns LLP said that Wells Fargo failed to service at least $15 billion worth of mortgage-backed securities that the bank had issued and Morgan Stanley did not service $5 billion of similar securities where the Houston-based law firm's...
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