Morgan Stanley pays £2.6 billion for mis-selling of mortgage-backed securities

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The US Justice Department said the bank misled investors about the quality of the home loans it packaged into bonds.

 

It means that major banks in the United States have now paid over $130 billion in settlements, fines and other costs linked to the sale of such products.

JPMorgan, Bank of America and Citigroup have previously settled with federal and state authorities over the probe and agreed to pay a total of more than $35 billion in cash and consumer relief.

Because of the fine for the mis-selling, Morgan Stanley said it had been forced to increase legal reserves related to mortgage matters, which has reduced its 2014 income by $2.7 billion.

Goldman Sachs is likely to be the last of the banks to settle its case.

Source Article from http://www.standard.co.uk/business/business-news/morgan-stanley-pays-26-billion-for-misselling-of-mortgagebacked-securities-10072283.html

February 26, 2015 |
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