Pursuits
'We Are Running Under the Radar': Morgan Stanley in $3.2 Billion Mortgage-Bond Pact
- Ends federal-state probe into bank's role in financial crisis
- Deal includes $2.6 billion in payments previously disclosed
The Morgan Stanley headquarters in New York City.
Photographer: Mario Tama/Getty ImagesThis article is for subscribers only.
Morgan Stanley agreed to pay $3.2 billion to end a joint federal-state investigation into its handling of mortgage-backed securities, the fourth deal to be struck in a probe of the role played by big U.S. banks in the subprime mortgage meltdown and the financial crisis it spawned.
The settlement, announced Thursday by federal and state officials, includes $550 million in cash and other benefits for New York, on top of $2.6 billion in payments previously disclosed in a regulatory filing.