$2.6 Billion Settlement reached to resolve Mortgage-Backed Securities against Morgan Stanley

Settlement Amount: 

A settlement has been reached to resolve Mortgage-Backed Securities against Morgan Stanley.

The Justice Department announced on Thursday, that Morgan Stanley will pay a $2.6 billion penalty to resolve claims related to Morgan Stanley’s marketing, sale and issuance of residential mortgage-backed securities (RMBS).  This settlement constitutes the largest component of the set of resolutions with Morgan Stanley entered by members of the RMBS Working Group, which have totaled approximately $5 billion. 

As part of the agreement, Morgan Stanley acknowledged that it failed to disclose critical information to prospective investors about the quality of the RMBS loans and about its due diligence practices.

In addition, Morgan Stanley has agreed to pay the state of New York $550 million and the state of Illinois $22.5 million in related settlements.

If you have a similar case please fill out the form below or email mail@whistleblowerinstitute.com or call: 619-452–1218


If you or someone you know experienced a similar situation or any other wrongdoing within a corporation you should contact mail@whistleblowerinstitute.com or call: 619-452–1218

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