Morgan Stanley Reaches $1.25 Billion Mortgage Settlement

[n2doc]

Source: NYT

Morgan Stanley has agreed to pay $1.25 billion to the Federal Housing Finance Agency to settle claims that it sold shoddy mortgage securities to Fannie Mae and Freddie Mac that resulted in big losses for the government-backed entities.

In a securities filing late Tuesday, Morgan Stanley said that it had reached the agreement “in principle” with the agency, which is the federal conservator for Fannie and Freddie.

The settlement is the latest agreement between a Wall Street firm and the agency, which sued 17 banks in 2011 seeking compensation for losses that were borne by taxpayers.

According to a lawsuit filed by the agency, Morgan Stanley sold $10.58 billion in mortgage-backed securities to Fannie and Freddie, while presenting “a false picture” of the riskiness of the loans.”


Read more: http://dealbook.nytimes.com/2014/02/04/morgan-stanley-reaches-1-25-billion-mortgage-settlement/?hp

[yourout]

1. And again.....no one goes to jail and we will have a repeat in my lifetime.

If you really want this to stop you need some perp walks along with time in the crowbar motel.

[grahamhgreen]

5. And they still come out on the plus side of the cost/benefit.

[KeepItReal]

2. Jeeves, take that out of Petty Cash

Accounting Department, this is a tax write off, right?

[KoKo]

3. Another SETTLEMENT! OMG...How many is this...?

How are they Still in Business?

Oh....Nevermind...I think I already know the answer to that. It's just incredible the more it goes on though...with no jail time. "Nothing to see there...just pay up...and move along."

[Paulie]

4. Only 10% penalty. 90% profit.

Sigh

[colsohlibgal]

6. Just Not Enough

Again, this is like fining one of us $20 or so. With no perp walks either after their serious fraud which caused real trouble to people, pension funds, etc. Our justice system does not treat us all equally.